In cases where an employee is not meeting performance expectations, a company may elect to put the person on a so-called performance improvement plan (PIP). A PIP can provide a helpful road map to improve the performance of an employee who is struggling in certain areas. For example, a sales associate who is struggling to meet her sales goals might need some direction to get back on track. Or a new supervisor who is struggling with his recently acquired managerial tasks may need assistance on how to manage other employees.
A PIP can also protect a company from a claim of discrimination, as demonstrated by a recent decision by the U.S. Court of Appeals for the Fourth Circuit. The court in Hightower v. Savannah River Remediation, LLC, No. 16-1454 (4th Cir. November 20, 2017), concluded that an employee’s refusal to sign a PIP provided his employer with a non-discriminatory reason for reassigning him to another position.
And while there can be clear advantages to implementing a PIP, doing so may not be appropriate for every employee where performance is an issue. NT Lakis attorneys have prepared a guide that takes a look at the pros and cons of implementing a PIP. Please note that this guide is not intended to provide legal advice. Specific questions that arise with regard to using a PIP should be directed to legal counsel.
Members of the Center for Workplace Compliance (CWC) can read more here.