Dr. Phil Fires Jerry Sharell, Gay Publicist Who Sues Him

**Dr. Phil McGraw Faces Lawsuit From Former Publicist Over Termination and Discrimination Claims**

A former publicist of the popular TV personality has filed a lawsuit in Los Angeles Superior Court, alleging that Dr. Phil McGraw wrongfully terminated his employment, failed to pay wages on time, and discriminated against him for being openly gay.

The lawsuit was filed Thursday, August 20. Sharell says he began working for McGraw in 2016 and was promoted to vice president of publicity three years later. When McGraw departed CBS and launched Merit Street Media in 2023, Sharell followed the move to Dallas while keeping the same role.

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## Background & Context

Dr. Phil McGraw, known worldwide as “Dr. Phil,” spent more than a decade anchoring *The Dr.

Phil Show* on CBS before stepping away in 2023 to focus on his own production company, Merit Street Media. The network venture was positioned as a “digital‑first” platform aimed at younger audiences and the burgeoning podcast market, but it struggled to gain traction against established streaming services.

Facing mounting operational costs and revenue shortfalls, the company filed for Chapter 11 bankruptcy in 2025. A subsequent court ruling later that year determined that the filing had been improperly submitted, prompting McGraw to spin off a new venture, Envoy Media, in early 2026.

Sharell, a seasoned publicist with a decade of experience in the broadcast and digital sectors, had built his reputation on strategic media placements and high‑profile brand partnerships.

His promotion to vice president of publicity at Merit Street Media came after three successful years of managing media outreach for McGraw’s syndicated content. When the company transitioned to Envoy Media, Sharell was asked to relocate from New York to Dallas, where the new headquarters were set up.

Sharell claims that once he relocated, he was “intentionally excluded” from his 20 colleagues because he’s openly “homosexual.” The court documents indicate that Sharell was singled out before being put on a hiatus.

He says his employment status changed in March, when the company moved him from an employee with benefits to an independent contractor. , that shift meant losing health insurance and a 30 percent pay cut.

He maintained that his job duties did not change, but felt “compelled” to accept the new terms under “a great deal of duress and stress” because he was told the firm valued loyalty from its staffers.

By March, Sharell was reportedly informed that his position was put on “hiatus” due to “financial considerations.” The court documents claim that no other employees were similarly placed on a hiatus or had their salaries reduced.

The lawsuit accuses McGraw and Envoy Media of violating the Americans with Disabilities Act (ADA) and Title VII of the Civil Rights Act by engaging in discriminatory employment practices.

Sharell further alleges that the transition to independent contractor status was a pretext for avoiding the provision of benefits that he had received as an employee.

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## Fan Reaction

The filing sparked an immediate wave of responses on social media, with many fans expressing support for Sharell and criticism of McGraw’s handling of employee relations. LGBTQ+ advocacy groups highlighted the case as an example of the broader industry problem of “pink‑tape” discrimination faced by openly gay professionals in media.

Some fans shared personal anecdotes about the difficulty of securing fair employment conditions after leaving larger networks, .

At the same time, a segment of Dr. Phil’s long‑time viewership defended the former host, reminding readers that he has “always championed family values” and had been a vocal advocate for diverse representation on his show.

These contrasting reactions illustrate the polarized perception of McGraw’s legacy: a respected counselor to millions versus a figure at the center of a modern employment dispute.

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## Industry Impact

The case could have far‑reaching implications for how media start‑ups structure employment agreements. The independent contractor model is common in digital media, but it often blurs the line between true outsourcing and unlawful misclassification.

If the court sides with Sharell, it may prompt companies to re‑examine their benefit policies, especially for high‑profile talent who rely on company‑provided health coverage.

Additionally, the allegations touch on a larger conversation about LGBTQ+ inclusion within media production teams. A study from 2023 found that only 14 % of media executives identified as LGBTQ+, and those who did faced higher scrutiny over their hiring and retention practices.

Sharell’s lawsuit brings a personal narrative to this statistical reality, potentially encouraging other employees to come forward with similar claims.

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## What the Parties Say

McGraw has not publicly addressed the accusations, but his attorney Chip Babcock slammed Sharell’s filing.

In a statement to reporters, Babcock said, “Jerry Sharell was put on hiatus over the summer as is common in this industry, especially with a media start‑up.” He added that “He was not fired for any reason and certainly not because of his sexual orientation.” Babcock further described the allegations as “made up out of whole cloth” and noted McGraw’s 25‑year history of treating LGBTQ+ communities with dignity.

“The company and Dr. Phil will vigorously defend these claims,” Babcock added.

Sharell, in his complaint, alleges that his lawsuit is an effort to avoid a pending arbitration between himself and the publicity employee, although no details of that arbitration are disclosed. He says the arbitration was dismissed because it was “incomplete and improperly filed.”

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## Current Status & Next Steps

The lawsuit remains pending in Los Angeles Superior Court. No court ruling or settlement has been announced. McGraw’s side has reiterated its intent to defend the claims vigorously, while Sharell seeks relief for wrongful termination and discrimination.

The outcome of the case will hinge on the court’s interpretation of the employment transition, benefits loss, and alleged discriminatory treatment.

As both parties await the court’s decision, observers note that this litigation could set a precedent for how media start‑ups handle employee transitions and potential discrimination claims.

If the court finds that Sharell’s independent contractor designation was a sham designed to dodge benefit obligations, it may force a wave of policy revisions across the industry, ultimately benefitting workers who previously navigated ambiguous employment arrangements.