What Is a Performance Improvement Plan (PIP)?

What Is a Performance Improvement Plan (PIP)?

A performance improvement plan (PIP) is a formal document or process an employer uses when it believes an employee’s performance is not meeting workplace expectations. A PIP typically identifies the areas where improvement is needed, explains what the employee is expected to do differently, establishes a deadline or review period, and describes what may happen if the employee does not improve.

For an employee, receiving a PIP can be stressful. It may be a genuine opportunity to correct performance problems, but it can also mean that the employer is seriously considering disciplinary action or termination if the problems continue.

A PIP is not, by itself, proof that an employee is about to be fired. What it means depends on the circumstances, the employer’s policies, the contents of the plan, and what happens during the improvement period.

What Does a Performance Improvement Plan Include?

There is no single legally required format for a PIP. Employers generally create their own policies and procedures for managing employee performance.

A PIP may include:

• The specific performance problems the employer has identified
• Examples of work that the employer believes did not meet expectations
• The performance standards the employee is expected to meet
• Specific goals or targets
• Steps the employee should take to improve
• Training, coaching, or other support the employer will provide
• A deadline or period in which improvement must occur
• Meetings or check-ins to review progress
• The consequences of failing to meet the requirements

For example, an employer might place an employee on a 60-day PIP because the employee has repeatedly missed project deadlines. The plan might require the employee to complete assigned projects by specified deadlines, attend weekly meetings with the manager, and demonstrate sustained improvement during the 60-day period.

A well-written PIP generally gives the employee a clearer understanding of what the employer expects and how performance will be measured. Employment-law guidance also emphasizes using specific performance expectations and consistently applying them to employees.

How Long Does a PIP Last?

There is no universal length for a performance improvement plan.

Many PIPs last 30, 60, or 90 days, although an employer may choose a shorter or longer period depending on the job and the performance issue. The appropriate timeframe may depend on how quickly an employee could reasonably demonstrate improvement.

For example, correcting a documentation problem may require less time than demonstrating sustained improvement in a sales position.

The PIP should make the applicable timeframe clear so the employee understands when performance will be evaluated.

Why Do Employers Use PIPs?

Employers may use PIPs for several reasons.

A PIP can give an employee an opportunity to understand what is going wrong and correct the problem before more serious disciplinary action is taken. It can also give managers a structured way to communicate expectations and track whether performance improves.

A PIP can also create documentation of performance concerns. If an employee ultimately is disciplined or terminated for legitimate performance reasons, the employer may rely on documentation showing that the employee was informed about the concerns and given an opportunity to improve.

However, employers do not have to use PIPs in every situation. Serious misconduct, for example, may warrant immediate discipline or termination rather than a performance improvement process.

Does Being Put on a PIP Mean You Are Going to Be Fired?

Not necessarily.

Some employers genuinely use PIPs to give employees an opportunity to improve. Other employers may use them as part of a disciplinary process that could eventually lead to termination.

The PIP itself does not tell you exactly what your employer has decided.

The contents of the plan can provide useful information. A plan with specific, measurable expectations and reasonable opportunities for improvement may function as a genuine performance-management tool. A plan with vague expectations, constantly changing requirements, or standards that appear impossible to meet may raise different concerns.

Even when an employer intends a PIP as a genuine opportunity to improve, failure to meet the requirements can still lead to further discipline, including termination.

Is a PIP Required Before an Employer Can Fire You?

Generally, no federal law requires a private-sector employer to place an employee on a PIP before terminating the employee.

Whether a PIP is required can depend on the employer’s policies, an employment contract, a collective bargaining agreement, applicable state law, or other circumstances.

In an at-will employment relationship, an employer generally does not have to provide a particular disciplinary step before ending employment, as long as the reason for the termination is not unlawful. A company policy or contract, however, may impose additional requirements.

An employee should therefore look at the employer’s handbook, employment agreement, disciplinary policy, and any applicable union agreement when determining whether the employer was expected to follow a particular procedure.

Can an Employer Fire You After a PIP?

Yes. An employer may terminate an employee after a PIP if the termination is otherwise lawful.

A PIP may specifically state that failure to meet the required performance standards could result in additional discipline, up to and including termination.

However, an employer cannot use a PIP as a way to carry out an otherwise unlawful employment decision. For example, federal employment laws prohibit discrimination based on protected characteristics and prohibit retaliation for certain protected activities.

The fact that an employer describes a termination as being based on “performance” does not automatically make the decision lawful. The circumstances surrounding the decision can matter.

Can a PIP Be Retaliation?

A PIP can potentially be part of an unlawful retaliation claim, depending on why the employer imposed it and what happened before it.

Federal equal employment opportunity laws prohibit retaliation against employees for engaging in protected activity, such as opposing unlawful discrimination, participating in a discrimination investigation, or filing a discrimination complaint. The EEOC specifically recognizes that retaliation can include actions such as an unjustified negative performance evaluation or increased scrutiny.

For example, suppose an employee reports sexual harassment to HR. Shortly afterward, the employee is placed on a PIP based on alleged performance problems that had not previously been raised. That timing alone does not prove retaliation, because an employer may have legitimate reasons for addressing poor performance. But the timing and other evidence could be relevant to whether the PIP was motivated by retaliation.

The EEOC also makes clear that employees who engage in protected activity are not automatically protected from legitimate consequences for poor performance. Employers can still address genuine performance problems, even when an employee has made a discrimination complaint.

What If a Disability Is Affecting Your Performance?

A PIP does not eliminate an employee’s rights under the Americans with Disabilities Act (ADA).

An employer generally may hold an employee with a disability to legitimate performance standards. The ADA does not require an employer to lower legitimate production or performance standards simply because an employee has a disability.

However, a reasonable accommodation may sometimes help an employee meet those standards. The EEOC explains that an employee may request a reasonable accommodation when a disability is affecting performance, including after the employer has identified a performance problem.

For example, an employee with a disability may need a reasonable accommodation involving equipment, scheduling, communication, or another aspect of how the employee performs the job.

An employee generally does not have to use the specific words “reasonable accommodation” to make a request. The employee needs to communicate that a change or adjustment at work is needed because of a medical condition.

An accommodation does not necessarily mean that an employee can avoid legitimate performance standards. The purpose is generally to give the employee an equal opportunity to perform the job, not to excuse poor performance.

What Should You Do If You Receive a PIP?

If your employer puts you on a PIP, take it seriously even if you believe the plan is unfair.

Consider taking these steps:

Read the plan carefully. Identify exactly what your employer says is wrong and what you are expected to do differently.

Ask questions about unclear expectations. If a goal is vague, ask your manager to explain how your performance will be measured.

Keep records of your work. Keep copies of relevant emails, completed projects, deadlines, performance measurements, and other records that demonstrate your work, as long as you do so without violating company confidentiality or other policies.

Document your progress. Keep track of the steps you take to satisfy the PIP and any feedback you receive.

Ask for needed training or resources. If the employer has identified a skill or knowledge gap, ask what training or support is available.

Pay attention to changing expectations. If the employer repeatedly changes the requirements after the PIP begins, document what changed and when.

Consider whether protected rights are involved. If the PIP follows a discrimination complaint, request for medical leave, accommodation request, or other legally protected activity, the circumstances may warrant additional attention.

Continue performing your job. Even if you believe the PIP is unfair, continue making a good-faith effort to meet legitimate performance expectations.

If you believe the PIP is being used because of discrimination or retaliation, consider obtaining advice about your particular circumstances from an employment-law professional or another qualified source.

Do You Have to Sign a PIP?

Whether you have to sign a PIP depends on the circumstances and the employer’s policies.

An employer may ask an employee to sign a PIP to acknowledge that the employee received and discussed the document. A signature does not necessarily mean that the employee agrees with every statement in the PIP.

Before signing, read the document carefully and determine what the signature is intended to acknowledge. If you disagree with factual statements in the document, you may be able to explain your disagreement in writing or ask that your response be attached to the document, depending on the employer’s procedures.

Refusing to sign a document can also have workplace consequences, so employees should consider the specific circumstances rather than assuming that refusing is always the best option.

What Happens When a PIP Ends?

Several things can happen when the PIP period ends.

If the employee meets the requirements, the employer may conclude that the employee has successfully improved and end the PIP.

The employer may also extend the PIP or establish additional performance requirements if improvement has occurred but the employer believes additional progress is necessary.

If the employee has not met the requirements, the employer may take additional disciplinary action, which could include termination.

The outcome depends on the employer’s policies, the terms of the PIP, the employee’s performance, and the circumstances surrounding the employment relationship.

Is Every PIP Fair?

No. Like other workplace decisions, a PIP can be implemented fairly or unfairly.

A legitimate performance-management process should generally identify actual performance concerns and communicate reasonable expectations. Consistency also matters. The EEOC advises employers to consider whether they are applying stricter performance or behavioral standards to an employee who has engaged in protected activity and whether similarly situated employees have been treated differently.

Potential warning signs can include:

• The employer cannot identify specific performance problems.
• The standards are vague or constantly changing.
• The employee is suddenly subjected to significantly greater scrutiny.
• Employees with similar performance problems are treated differently.
• The PIP follows a discrimination complaint or other protected activity.
• The employer ignores a reasonable accommodation request.
• The employer appears to be holding the employee responsible for something that was caused by protected leave or another legally protected circumstance.

None of these circumstances automatically proves that a PIP is unlawful. They are factors that may warrant a closer look at the employer’s reasons and the surrounding facts.

The Bottom Line: What is a Performance Improvement Plan (PIP)?

A performance improvement plan (PIP) is a formal process employers use to identify performance problems and establish specific expectations for improvement.

Being placed on a PIP does not automatically mean you will be fired. It may be a genuine opportunity to improve, but it can also be part of a disciplinary process that ultimately leads to termination.

If you receive a PIP, read it carefully, understand exactly what your employer expects, document your efforts and progress, and pay attention to whether the employer is applying its standards consistently. If the PIP follows a discrimination complaint, accommodation request, or other protected activity, additional legal issues may be involved.

Employment laws vary depending on the circumstances and jurisdiction. A PIP itself is not automatically illegal or evidence of discrimination or retaliation.

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Disclaimer

This article provides general information about U.S. employment law and is not legal advice. Employment rights can vary based on federal law, state law, local law, employment contracts, collective bargaining agreements, and the specific facts of a situation. For advice about a particular situation, consider consulting a qualified employment-law attorney or appropriate government agency.

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Article: What Is a Performance Improvement Plan (PIP)?