Full Breakdown
Dr. Phil Faces Lawsuit Alleging Wrongful Termination and Sexual-Orientation Discrimination
8/22/2026, 12:13:57 AM
Lawsuit Over Wrongful Termination and Alleged Discrimination
On August 20, Jerry Sharell filed a complaint in Los Angeles County Superior Court accusing television personality Dr. Phil McGraw and his companies of wrongful termination, failure to pay timely wages, and discrimination because Sharell is openly gay. Sharell says he began working for McGraw in 2016, was promoted to vice president of publicity three years later, and followed McGraw from CBS to the media venture Merit Street Media in 2023. He alleges that after the venture’s transition to Envoy Media, his status shifted from an employee with benefits to an independent contractor, resulting in a 30 % pay cut and loss of health coverage. Sharell also claims he was placed on “hiatus” in March after being “intentionally excluded” from a group of 20 employees who relocated to Texas.
Background of Merit Street Media and Envoy Media
Merit Street Media launched in 2023 as a joint venture with the Trinity Broadcasting Network (TBN), a major Christian broadcaster. The venture filed for Chapter 11 bankruptcy protection in 2025; a federal judge later ruled the filing improper, prompting McGraw to establish Envoy Media. Sharell’s complaint states that employees were required to sign a “Statement of Faith” affirming devotion to Jesus and that a weekly-visiting pastor conducted prayers and left prayer cards for non-participants, creating a “disturbing and shocking” atmosphere for him.
Claims and Allegations
- Discriminatory exclusion: Sharell says he was the only openly gay employee among the 20 staff members who moved to Dallas, and that he was singled out before being placed on hiatus.
- Hostile remarks: The complaint cites an incident in 2025 in which McGraw allegedly told Sharell, “Jeez, he’s gayer than a fruit basket and not listening.”
- Selective hiatus: According to the suit, no other employees were placed on hiatus or suffered salary reductions.
Official Statements & Responses
Chip Babcock, attorney for Envoy Media, issued a statement rejecting Sharell’s allegations. McGraw has not publicly commented on the filing.
Verbatim Quotes
- “Jeez, he’s gayer than a fruit basket and not listening.” — Dr. Phil McGraw, spokesperson
- “These allegations against Envoy and Dr. Phil are made up out of whole cloth.” — Chip Babcock, lawyer
Conflicting Reports & Gaps
- Bankruptcy timing: One source notes that Merit Street Media filed for Chapter 11 bankruptcy in 2025 and that a court ruled the filing improper in October of that year. Another source describes the bankruptcy filing as occurring “last year” after the 2023 launch, without specifying the year. Both accounts agree the filing was later deemed improper, but the precise timing differs.
- Extent of religious requirements: Sharell’s complaint details a mandatory “Statement of Faith” and weekly pastoral visits, while the company’s public statements have not addressed these specific practices.
What’s Next
Sharell’s complaint seeks damages, legal costs, and a jury trial. The case is pending in Los Angeles County Superior Court, and no trial date has been set. Both parties have indicated they will continue to litigate the claims.
