Run: Progressive Discipline Policy

This policy establishes a consistent, documented progressive discipline process for addressing employee conduct or performance concerns. The goal is to correct issues early, support improvement, and apply discipline fairly and consistently. This policy is intended to promote good-faith management practices and does not limit the company’s right to skip steps, repeat steps, or proceed directly to termination when the severity of the issue warrants it, subject to applicable law.

This policy applies to all employees unless a separate written policy, collective bargaining agreement, employment agreement, or applicable law provides otherwise. It applies to conduct, attendance, performance, professionalism, policy violations, and other workplace issues. It does not apply to protected activity under the NLRA Section 7, complaints of discrimination or harassment, leave requests under the FMLA, or requests for reasonable accommodation under the ADA, except to the extent discipline is based on legitimate, non-retaliatory, non-discriminatory reasons.

For purposes of this policy: - **Verbal warning**: A documented coaching conversation identifying the issue, expected correction, and timeline for improvement. - **Written warning**: A formal documented warning placed in the employee’s file describing the issue, prior coaching, expectations, and consequences. - **Final warning**: The last formal step before termination, typically used when prior discipline has not resolved the issue or the issue is serious. - **Termination**: Ending employment, with or without prior steps, depending on the facts and applicable law. - **PIP**: A performance improvement plan with measurable goals, support, and review dates. - **Good-faith**: Honest, reasonable action taken without retaliation, discrimination, or pretext.

The company may use progressive discipline to address performance or conduct concerns. Discipline will be based on the nature and severity of the issue, the employee’s history, the impact on operations, and any mitigating or aggravating circumstances. The company seeks to apply discipline consistently, without regard to protected characteristics under Title VII of the Civil Rights Act of 1964 or other applicable anti-discrimination laws, and without retaliation for protected complaints, protected leave, or protected concerted activity.

1. **Verbal warning** - The manager meets with the employee to explain the issue, expected improvement, and deadline. - The manager documents the date, issue, expectations, and employee response. - HR may review the documentation before it is finalized. 2. **Written warning** - If the issue continues or if the conduct warrants escalation, the manager issues a written warning. - The warning must describe the conduct or performance issue, prior coaching, required corrective action, measurable expectations, and the review period. - The employee is given an opportunity to respond and may submit a written statement for the file. 3. **Final warning** - If improvement is insufficient or the issue is serious, the company may issue a final warning and/or PIP. - The final warning must state that failure to meet expectations may result in termination. - The final warning should identify the specific essential function, standard, or rule at issue and the support available. 4. **Termination** - If the employee fails to improve, repeats the conduct, or commits a severe violation, employment may be terminated. - HR and the appropriate manager must review the documentation before termination when practicable. - The termination decision must be documented with the reason, dates of prior discipline, and any relevant investigation findings.

At each step, the manager must document: - the date, time, and nature of the issue; - the policy, standard, or essential function involved; - prior coaching or discipline; - the employee’s explanation or response; - the expected corrective action and deadline; - any support, training, or accommodation offered; - the outcome of follow-up review; - the names and roles of participants. Documentation must be factual, objective, and free from references to protected characteristics. If the issue may involve disability, leave, pregnancy-related limitations, or another protected condition, HR must evaluate whether the interactive process, FMLA protections, or another accommodation/leave obligation applies before discipline is finalized.

**Managers** - Identify issues promptly and address them consistently. - Document warnings and follow-up actions. - Escalate serious matters to HR. **Human Resources** - Review discipline for consistency and legal risk. - Confirm documentation is complete. - Advise on ADA, FMLA, NLRA, EEOC, and FLSA considerations. **Employees** - Understand expectations. - Correct performance or conduct issues. - Provide relevant information, including requests for accommodation or leave, when applicable. **Policy holder** - Maintain records securely and ensure the policy is applied consistently across departments.

The company will not apply discipline in a manner that violates applicable law, including Title VII of the Civil Rights Act of 1964, the ADA, the FMLA, the NLRA, or the FLSA. - **NLRA / Section 7**: Employees may engage in protected concerted activity regarding wages, hours, and other terms and conditions of employment. Discipline may not be based on protected activity. - **ADA**: If performance issues may be related to a disability, the company will engage in the interactive process and consider reasonable accommodation for the employee’s essential function(s). - **FMLA**: Absences or performance issues related to approved or protected leave must not be used as a basis for discipline. - **FLSA**: Discipline must not be used to improperly classify, dock, or otherwise treat exempt and non-exempt employees in a manner inconsistent with wage and hour requirements. - **EEOC / Title VII**: Discipline must be applied without discrimination based on race, color, religion, sex, pregnancy, sexual orientation, gender identity, national origin, age, disability, or other protected status under applicable law. **California employees:** Any discipline involving protected leave, disability accommodation, or workplace complaints must be reviewed for California-specific requirements, including applicable FEHA protections and any local leave or retaliation rules. **New York employees:** Discipline involving complaints or whistleblowing should be reviewed for applicable New York Labor Law and whistleblower protections, including NY Labor Law Section 740 where relevant. **Illinois employees:** Attendance-related discipline must be reviewed for compliance with the Illinois One Day Rest in Seven Act where applicable. **Washington employees:** Attendance and leave-related discipline must account for Washington paid sick leave requirements where applicable. The company may deviate from the progressive steps, in whole or in part, based on the severity of the issue, prior history, investigation findings, or business needs, provided the decision is lawful and documented.

This policy will be reviewed at least annually and updated as needed to reflect changes in law, business practices, and operational needs. The policy holder is responsible for maintaining the current version, effective date, and revision history.