A Performance Improvement Plan—commonly referred to as a PIP—has become a standard tool in modern workplace management. While once associated primarily with hourly or lower-level employees, PIPs are now frequently used across a wide range of professions, including doctors in hospital systems, attorneys in law firms, engineers, IT professionals, and even senior-level executives. Employers are deploying PIPs not only to address alleged performance deficiencies but also, at times, as a precursor to termination.
For many employees, being placed on a PIP is both unsettling and confusing. It often serves as the first formal indication that their job may be at risk. Yet few employees fully understand how little legal protection exists at this stage—or how broadly employers may use the PIP process at their discretion.
What follows are ten common misconceptions employees have about PIPs—what they are, what they are not, and what they may ultimately mean for your employment.
For step-by-step guidance on how to respond if you’ve just been placed on a PIP, read our companion post: An Employee’s Guide to Performance Improvement Plans in California.
PIP Misunderstanding #1: An employer is not required to use a PIP before making a termination decision
In California, most employees are “at-will,” meaning they can be terminated at any time, with or without notice, and for any reason that is not illegal (such as discrimination or retaliation). Unless you have an employment contract that limits your employer’s right to terminate you—something that is rare—there is no legal obligation for your employer to place you on a PIP before firing you. Many employees mistakenly believe that a PIP is a required step in a progressive discipline process. It’s not. Your employer may choose to terminate your employment without any prior warning or opportunity to improve.
PIP Misunderstanding #2: The PIP does not need to be “fair” and include achievable goals
One of the most stressful aspects of being placed on a Performance Improvement Plan is realizing that the goals may be vague, subjective, or even unrealistic or outright unattainable. Many employees feel overwhelmed as they try to meet expectations that seem deliberately designed to be unachievable. This is a common experience—and a legally permissible one.
There is no law that requires a PIP to be fair, balanced, or reasonable. Employers have broad discretion to set the terms of a PIP, including goals that are highly subjective or so narrowly defined that meeting them becomes almost impossible. A manager may impose shifting targets, arbitrary deadlines, or metrics that were never discussed before. While this may feel unfair, unfair treatment alone is not illegal.
Because the employer controls the process, employees often find that they have little recourse. Complaining to HR rarely results in meaningful changes, and courts generally will not intervene in performance-related disputes unless there is clear evidence of discrimination, retaliation, or another unlawful motive. The bottom line: the PIP does not need to be achievable—it only needs to be issued.
PIP Misunderstanding #3: If you successfully complete the PIP, you may still be terminated
A common—and often heartbreaking—misunderstanding is the belief that completing a PIP successfully guarantees job security. Many employees dedicate themselves fully to meeting every expectation outlined in the plan, believing that doing so will protect their position. Unfortunately, it doesn’t work that way.
Even if you meet every goal, fulfill every task, and receive no negative feedback during the PIP period, your employer still has the legal right to terminate your employment. This is especially true in California, where most employment is “at-will,” meaning your employer can let you go for any reason that is not unlawful, regardless of whether you successfully completed a PIP.
The PIP is not a contract. It is not a promise. It is simply a management tool, often used to document performance concerns and create a record that can support future termination decisions. In some cases, employers may have already decided to end the employment relationship before the PIP is even issued. The plan may then serve more as a formality or justification than a genuine effort to rehabilitate your performance.
This disconnect between employee expectations and employer discretion can lead to frustration, confusion, and a sense of betrayal. But it’s important to understand the legal reality: completing the PIP does not obligate your employer to keep you employed.
PIP Misunderstanding #4: If the PIP lasts 90 days, that doesn’t mean you have 90 days left
Many employees assume that if a Performance Improvement Plan (PIP) states it will last 90 days, they are guaranteed employment for that entire period. Unfortunately, this is not the case.
Under California’s at-will employment doctrine, your employer can terminate your employment at any time, with or without cause or advance notice—regardless of what the PIP says about duration. A 90-day PIP simply means the employer intends to evaluate your performance over that timeframe, but it is not a contractual promise.
In practice, some employers terminate employees before the end of the PIP period, citing insufficient progress. Others may extend the PIP if they believe more time is needed. These decisions are usually made at the employer’s discretion and may not follow a consistent or fair process.
If you’ve been placed on a PIP, it’s important to treat it as a warning sign that your job may be in jeopardy—regardless of how long the plan is supposed to last. Don’t assume you have the full 90 days. Instead, use the time to document your efforts, seek clarification in writing about expectations, and consider whether the PIP is being used as a pretext for an unlawful termination.
PIP Misunderstanding #5: The Performance Improvement Plan is not an employment contract
A Performance Improvement Plan is not a legally binding agreement. It is an internal management tool used to document performance concerns and set expectations. Signing a PIP does not create a contract for continued employment or guarantee any specific terms or duration.
By signing, you are merely acknowledging that the employer has communicated certain performance expectations—not that you agree with the content or outcomes. Your at-will employment status remains unchanged unless you have a separate written employment agreement stating otherwise.
PIP Misunderstanding #6: The PIP does not need to be “fairly” administered or judged
You may feel that the Performance Improvement Plan (PIP) process is being misused—for example, that it’s being used to push you out rather than genuinely help you improve—or that your manager is evaluating your performance unfairly. While these concerns are valid, it’s important to understand that under California law, employers are not required to be fair, reasonable, or transparent when implementing or evaluating a PIP.
However, there is one critical exception: if the PIP is being used in a discriminatory manner, the law may provide protections. A discriminatory PIP is one that is issued or enforced based, even in part, on a protected characteristic such as your race, gender, age (40+), disability, pregnancy status, national origin, sexual orientation, or other classifications protected by California’s Fair Employment and Housing Act (FEHA).
PIP Misunderstanding #7: There is no appeal from a Performance Improvement Plan
Many employees believe that once a Performance Improvement Plan is issued, there must be an internal appeal process or opportunity to reverse it. In reality, most employers do not offer a formal mechanism to challenge or appeal a PIP. Once it has been issued, it typically remains in place. While you can express disagreement—either verbally or in writing—doing so rarely results in changes to the plan. More importantly, it does not prevent your employer from continuing with discipline or termination during or after the PIP period.
How to Respond When You’re Given a PIP
If you are informed of a PIP during a meeting with management or HR, your response in that moment can be critical. The best approach is to remain calm, professional, and open to the feedback. Resist the urge to argue or defend yourself immediately. Instead, listen carefully to the concerns being raised and make sure you understand the expectations and timeline involved. Ask clarifying questions, such as:
- What specific improvements are expected?
- What does success look like?
- What support or resources will be provided?
It is appropriate to register your concern about being placed on a PIP, but do so in a respectful and constructive tone. For example, you might say, “I understand your concerns and I am committed to addressing the issues you’ve identified. I want to improve so I can continue working here—I value this job.” Even if you disagree with the feedback, avoid sarcasm or emotional outbursts. As employment attorney Matt Ruggles puts it: “Act like you care, even if you don’t.”
Take notes during the meeting so you can refer back to the specifics. This is not only helpful for meeting the expectations laid out in the PIP, but also for protecting yourself should the matter later escalate into a legal dispute.
For step-by-step guidance surrounding the HR process, see our three-part series: Preparing to Meet with HR, Meeting with HR, and After a Difficult Meeting with HR.
Should You Submit a Written Response?
Although it may feel necessary to defend yourself in writing, be cautious. Submitting a written rebuttal is usually not effective and can be risky. Employers are not required to respond to or consider it, and your words could later be used against you in legal proceedings. Many such responses come across as defensive, emotional, or misfocused.
If you strongly disagree with the contents of the PIP, it’s generally better to calmly note your disagreement during the meeting. Say something simple like, “I disagree with your assessment,” or “I don’t believe that accurately reflects my performance,” and then shift your focus to understanding what’s expected of you moving forward.
What If the PIP Is Based on Incorrect Facts?
If the PIP contains factual inaccuracies, approach the situation strategically. Begin by collecting documentation that supports your position—such as emails, reports, or objective data. Create a concise written summary (ideally no more than one or two pages) that lays out the relevant facts. Practice explaining your position out loud, either to a trusted friend or just to yourself, so that you are prepared to discuss it calmly and clearly.
Request a follow-up meeting with HR or your supervisor, and during that conversation:
- Stick to the facts.
- Keep your presentation brief (ideally under 15 minutes).
- Avoid emotional arguments or accusations.
- Do not allege discrimination or retaliation during the meeting, even if you suspect it. Instead, frame your approach as someone trying to help clarify the situation.
This approach shows that you are professional, reasonable, and solution-oriented—even if the employer is not. If you still believe the PIP is being used unfairly or as a pretext for discrimination, consult with an experienced employment attorney to assess your legal options.
PIP Misunderstanding #8: PIPs are not limited to only underperforming employees
Many employees assume that being placed on a Performance Improvement Plan (PIP) automatically means their work is poor or substandard. That’s not always the case. While PIPs are theoretically designed to help employees address performance deficiencies, in practice, they are often used for reasons unrelated to actual performance.
In some workplaces, PIPs are issued because of personality conflicts with a supervisor or coworker, even when the employee’s performance meets or exceeds expectations. In other cases, employers use PIPs as part of a broader restructuring or downsizing strategy—especially when they want to reduce headcount without triggering legal risk by conducting formal layoffs.
Worse, some employers misuse PIPs to target high-performing employees who have become inconvenient, outspoken, or simply too expensive. For example, an employee who raises concerns about management practices, reports misconduct, or asks for reasonable accommodations may suddenly find themselves placed on a PIP with vague or unrealistic expectations. In such cases, the PIP is not a genuine opportunity to improve—it’s a tool being used to create a paper trail for eventual termination.
This kind of misuse is particularly problematic because it can make it appear as though the employer gave the employee a “chance to improve,” when in reality, the decision to terminate may have already been made.
If you believe you are being placed on a PIP for reasons unrelated to your actual job performance—or as retaliation for engaging in protected activity (such as reporting discrimination, harassment, wage violations, or requesting medical leave)—it’s critical to document everything. Keep a detailed record of communications, expectations, and any changes in treatment leading up to the PIP. This documentation may be essential if you later pursue a legal claim.
In short, don’t assume that a PIP is always about performance. Sometimes, it’s about control, cost, or risk management. Understanding that can help you respond strategically rather than taking it personally.
PIP Misunderstanding #9: If you complete the PIP and get fired anyway, you don’t automatically have a claim for wrongful termination
Many employees believe that if they complete a Performance Improvement Plan (PIP) and meet all the stated expectations, their job is secure—or that being fired afterward would automatically give rise to a wrongful termination claim. Unfortunately, that is not how the law works.
In California, most employment relationships are at-will, meaning your employer can terminate your employment at any time, with or without cause, and even after you’ve successfully completed a PIP. A PIP is not a contract or guarantee of continued employment, and completing one does not give you any special legal protection.
From a legal standpoint, you only have a valid wrongful termination claim if your firing violates a specific law. Common examples include:
- Discrimination based on a protected category (e.g., race, gender, age, disability, sexual orientation).
- Retaliation for engaging in protected activity, such as reporting harassment, wage violations, or safety concerns.
- Violation of public policy, such as being fired for refusing to engage in illegal conduct.
- Breach of contract, if you have an enforceable agreement that limits your employer’s ability to terminate you.
If none of these circumstances apply, an employer can still terminate you—even if you fully complied with the PIP and made measurable improvements. This can feel deeply unfair, but unless the termination implicates a legal right, it is generally lawful.
That said, if you believe your employer used the PIP as a pretext—for example, to cover up discriminatory or retaliatory motives—then the circumstances of your termination may be worth investigating further. In those cases, documentation showing that you completed all tasks and met the stated goals can help support your position that the PIP and termination were not truly performance-based.
Bottom line: completing a PIP may help protect your reputation and improve your employment prospects elsewhere, but it does not automatically give you a legal claim if the employer decides to terminate you anyway.
PIP Misunderstanding #10: It is very difficult to prove a PIP is discriminatory or is a form of harassment
If you believe that your Performance Improvement Plan (PIP) is unfair, retaliatory, or rooted in bias, you are not alone. Many employees suspect that a PIP is being used not to help them improve, but to push them out because of who they are or what they’ve said. However, proving that a PIP is discriminatory or constitutes workplace harassment is extremely difficult under the law.
To succeed on a legal claim for discrimination, retaliation, or harassment, you must do more than show that the PIP feels unfair or that it led to a negative outcome. You must provide specific, factual evidence that the employer’s actions were motivated—at least in part—by a protected characteristic (such as race, gender, age, disability, national origin, or sexual orientation), or in retaliation for engaging in protected activity (such as filing a complaint, requesting medical leave, or reporting unlawful conduct).
FAQs ABOUT PERFORMANCE IMPROVEMENT PLANS IN CALIFORNIA
What should I do if I’m placed on a Performance Improvement Plan (PIP) in California?
If you are placed on a PIP, remain calm and professional. Ask questions to clarify expectations, take detailed notes, and focus on meeting the outlined goals. Do not assume the PIP is fair or that it guarantees continued employment. If you suspect it’s being used unfairly or as retaliation, consult an employment attorney.
Can I be fired while on a PIP in California?
Yes. Under California’s at-will employment laws, your employer can terminate you at any time, even during an active PIP, regardless of the timeline stated in the plan.
Does completing a PIP protect me from being fired?
No. Successfully completing a PIP does not guarantee job security. Your employer can still terminate you unless doing so violates a specific legal right, such as protections against discrimination or retaliation.
Is a PIP legally binding in California?
No. A PIP is not an employment contract. It is an internal management document. Signing it typically only acknowledges receipt—not agreement with its content or any guarantee of continued employment.
Can a PIP be considered workplace discrimination or harassment?
Only in rare cases. To prove a PIP is discriminatory or retaliatory, you must show that similarly situated employees were treated differently or that the PIP followed protected activity (e.g., reporting discrimination). Mere unfairness is not enough to establish a legal claim.
Should I write a rebuttal to my PIP?
Generally, no. Most written rebuttals are unhelpful and can be used against you later. It’s better to verbally acknowledge your disagreement and focus on understanding and meeting the expectations. If necessary, document your perspective privately and consult a lawyer.
Can high-performing employees be placed on a PIP?
Yes. PIPs are sometimes misused for reasons unrelated to performance, including personality conflicts, workplace politics, or to set up a termination. Even top performers can find themselves targeted.
Is there a way to appeal a PIP?
Most employers do not offer a formal appeal process. Once a PIP is issued, it typically stands. You can express disagreement, but this rarely affects the outcome.
When should I contact an employment attorney about a PIP?
You should contact an attorney if you believe the PIP is based on discrimination, retaliation, or if it follows protected conduct like reporting illegal activity or requesting medical leave. Early legal advice can help you protect your rights.
What if the facts in my PIP are incorrect?
Document your side clearly and concisely. Gather supporting evidence (emails, performance records, etc.), practice your explanation, and request a follow-up meeting to calmly present your perspective. Avoid accusations and maintain a cooperative tone.
Conclusion
If you’ve been placed on a PIP, it’s important to understand what it actually means—and what it doesn’t. A PIP is not a legal shield, a promise of continued employment, or a fair hearing. It is an internal process your employer controls, often with the goal of documenting performance concerns for future discipline or termination.
If you suspect your PIP is being used unfairly or as a pretext for discrimination or retaliation, consult with an employment attorney as soon as possible. The earlier you seek advice, the more options you may have.
Contact the Ruggles Law Firm at 916-758-8058 to Evaluate Your Potential Lawsuit
Matt Ruggles has a thorough understanding of California employment laws and decades of practical experience litigating employment law claims in California state and federal courts. Using all of his knowledge and experience, Matt and his team can quickly evaluate your potential claim and give you realistic advice on what you can expect if you sue your former employer.
Contact the Ruggles Law Firm at 916-758-8058 for a free, no obligation consultation.
Blog posts are not legal advice and are for information purposes only. Contact the Ruggles Law Firm for consideration of your individual circumstances.
