Run: Performance Improvement Plan (PIP) Policy

This policy establishes a fair, consistent, and documented process for addressing employee performance concerns through a **Performance Improvement Plan (PIP)**. The goal of a PIP is to help employees meet role expectations through clear objectives, coaching support, regular progress reviews, and documented outcomes. This policy is intended to support good-faith management, improve performance, and reduce ambiguity in performance-related decisions.

This policy applies to all employees, unless otherwise required by contract, collective bargaining agreement, or applicable law. **Applicable roles:** employees, people managers, HR business partners, and approving leaders. This policy does not limit rights under the NLRA, FMLA, ADA, EEOC-enforced laws, or any applicable state or local law.

For purposes of this policy: - **PIP:** A formal plan with specific performance goals, timelines, support resources, and review checkpoints. - **Essential function:** A core duty of the role that must be performed successfully. - **Interactive process:** The ADA-required good-faith process to evaluate whether a reasonable accommodation is needed. - **Reasonable accommodation:** A modification or adjustment that enables a qualified individual with a disability to perform essential job functions, absent undue hardship. - **Documented warning:** A written notice describing the performance issue, expected improvement, and potential consequences.

A PIP may be used when an employee is not meeting one or more essential job expectations and additional structure, coaching, and documentation are needed to support improvement. A PIP must be based on objective, job-related performance concerns and must not be used in a discriminatory, retaliatory, or inconsistent manner. Managers must apply the policy in a manner consistent with **EEOC Title VII**, the **ADA**, the **FMLA**, the **FLSA**, and **NLRA Section 7** rights. A PIP is not required before discipline or termination unless required by contract, collective bargaining agreement, or local practice.

An employee may be placed on a PIP when one or more of the following apply: 1. The employee is not meeting documented performance expectations for quality, productivity, timeliness, attendance, communication, or job-specific deliverables. 2. Prior coaching, feedback, or a documented warning has not resulted in sustained improvement. 3. The performance issue is measurable and can reasonably be improved within a defined period. 4. The issue is not solely attributable to a pending accommodation request, protected leave, or another legally protected circumstance. Before initiating a PIP, the manager and HR should confirm that the concerns are job-related, supported by documentation, and not based on protected class status or protected activity.

Each PIP must include the following elements: - A clear description of the performance gap(s) - Specific, measurable improvement goals - Expected behaviors or deliverables - Support resources and coaching commitments - Check-in dates and final review date - The duration of the plan - The possible outcomes if goals are not met **Standard duration:** 30, 60, or 90 days, depending on the role, severity of the issue, and time needed to demonstrate improvement. Longer or shorter durations may be approved by HR based on business needs and legal considerations. The plan should be realistic, role-specific, and aligned to the employee’s essential functions.

During the PIP period, the manager must provide good-faith support, which may include: - Regular coaching meetings - Clear written feedback on progress - Examples of successful performance - Access to training, tools, or job aids - Clarification of priorities and deadlines Managers must document each check-in, including dates, topics discussed, employee responses, progress made, and any revised expectations. Documentation should be factual, objective, and free from subjective or discriminatory language. If the employee requests an accommodation or indicates a medical or disability-related issue, HR must evaluate the matter through the ADA interactive process before finalizing performance-related decisions.

Progress must be reviewed at the intervals listed in the PIP, with a final determination made at the end of the plan period. A PIP is considered successfully completed when the employee consistently meets the stated goals and demonstrates sustained performance improvement during the plan period. Completion of a PIP does not prevent future performance action if similar issues recur.

At the end of the PIP, the company may take one or more of the following actions based on the documented record: - Successful completion and return to standard performance management - Extension of the PIP if additional time is reasonably needed and approved by HR - Reassignment of duties or role changes, if business-justified and permitted by law - Additional documented warning or final warning - Separation of employment, including termination, if performance expectations are not met Any outcome must be based on documented, job-related performance criteria and applied consistently.

**Managers** are responsible for identifying performance concerns, documenting examples, setting measurable goals, providing coaching, and completing reviews on time. **Employees** are responsible for making a good-faith effort to meet the PIP requirements, attending check-ins, and communicating barriers to success. **HR** is responsible for reviewing the PIP for consistency, legal risk, and alignment with company practice, including ADA, FMLA, EEOC, FLSA, and NLRA considerations. **Policy holder / approving leader** is responsible for final approval of the plan and any final employment action.

This policy must be administered consistently and without discrimination or retaliation under **Title VII of the Civil Rights Act of 1964**, the **ADA**, and other applicable EEOC-enforced laws. - **ADA:** If a performance issue may be related to a disability, the company must engage in the interactive process and consider reasonable accommodation before final adverse action. - **FMLA:** Performance issues tied to protected leave must be handled carefully; leave usage itself may not be counted as a performance deficiency. - **FLSA:** This policy does not change exempt/nonexempt classification or overtime obligations. - **NLRA Section 7:** Nothing in this policy is intended to restrict protected concerted activity. - **California employees:** Any performance-related documentation and discipline must be reviewed for compliance with applicable California wage, leave, and anti-discrimination requirements. - **Other state/local laws:** Additional protections may apply, including whistleblower, paid sick leave, or leave-related rules. If a conflict exists between this policy and applicable law, the law controls.

This policy should be reviewed at least annually and updated as needed to reflect legal, operational, or organizational changes. Version: 1.0 Effective date: 2026-01-01 Owner: Human Resources