California employees often misunderstand what a Performance Improvement Plan actually signals. In California, a PIP is usually the first formal step in documenting a potential termination, even when the employer claims it’s supportive. Understanding what a Performance Improvement Plan means for a California employee is the key to protecting your job and your legal rights.
If you’ve just been put on a Performance Improvement Plan, you’re not alone. Performance Improvement Plans (or PIPs) are everywhere these days, from frontline employees to C-suite executives. Companies use them as a way to document performance issues, but the truth is that they’ve become a common step before termination.
I’m Matt Ruggles, and I’ve spent decades representing California employees to negotiate severance terms after termination, and in some cases, before termination even occurs. Many of the people I represent first came to me after being placed on a PIP, only to be terminated later. The reason I wrote this blog is because, while I don’t provide hourly advice on how to respond to a PIP, many employees who contact me about severance have questions about how to handle a PIP when it’s first issued.
This guide explains what a PIP really is, how to approach it strategically, and when it might make sense to start planning your exit. If you are a California employee searching for clear guidance on how a Performance Improvement Plan works and what it means for your job, this guide explains the process step by step.
If you’re considering a severance negotiation, whether you’re still employed or already facing termination, I handle both situations regularly and can help you understand your options. You can reach me at the Ruggles Law Firm at 916-758-8058 for a confidential evaluation.
How This Guide is Organized
Last updated November 2025 to include new guidance for California employees facing PIPs.
This guide is designed to help California employees understand how to respond to a Performance Improvement Plan (PIP) and protect their employment rights. Being placed on a PIP can feel overwhelming, but with the right approach, you can navigate the process more effectively and avoid common mistakes.
I have organized the information into four clear sections:
Section 1: Understanding a Performance Improvement Plan for California Employees
Section 2: How California Employees Should Respond When a Performance Improvement Plan Is Issued
Section 3: How a California Employee Should Navigate the PIP Process
Section 4: What California Employees Should Expect After a Performance Improvement Plan
Each section answers common questions employees face during the PIP process and provides practical, step-by-step strategies to protect yourself and preserve your employment options. You can read through the guide in full or use the outline below to find the answers most relevant to your situation.
If you’ve been laid off and are staring at a severance agreement, read my blog: California Severance Negotiation After Layoffs: What to Know Before You Sign
Table of Contents
Section 1: Understanding a Performance Improvement Plan for California Employees
- What a Performance Improvement Plan Means for a California Employee
- The Employer’s Purpose When Issuing a PIP to a California Employee
- Why Employers Use PIPs in California Instead of Immediate Termination
Section 2: How California Employees Should Respond When a Performance Improvement Plan Is Issued
- How a California Employee Should Prepare for a Pending PIP
- How California Employees Should Respond During a PIP Meeting
- Should a California Employee Submit a Written Response to a PIP?
- What a California Employee Should Do When the PIP Contains Incorrect Facts
- Immediate Steps California Employees Should Take After Receiving a PIP
- Should a California Employee Give HR Their Notes During a PIP?
Section 3: How a California Employee Should Navigate the PIP Process
- How California Employees Can Track Progress on PIP Goals
- Can an Employer Tell Co-Workers About a PIP in California?
- Can a PIP Be Extended for California Employees?
Section 4: What California Employees Should Expect After a Performance Improvement Plan
- Can a California Employee Have a PIP Removed from Their Personnel File?
- Do PIPs Affect Promotions and Raises for California Employees?
- Does a PIP Mean Termination Is Coming for California Employees?
- Can a California Employer Terminate You Before the PIP Ends?
- What Happens if a California Employee Quits During a PIP?
- Can a Former Employer Tell Future Employers About a PIP in California?
- Does a California Employee Have to Disclose a Past PIP to a New Employer?
Now that you have an overview of the topics we will cover, let’s start by understanding exactly what a Performance Improvement Plan is and why employers use them.
Section 1: Understanding a Performance Improvement Plan for California Employees
What a Performance Improvement Plan Means for a California Employee
A Performance Improvement Plan (PIP) is a formal written document used by employers to address and document performance concerns with an employee. It serves to outline specific problems, issues and deficiencies in the employee’s work performance, while also establishing clear, measurable expectations for improvement within a specified timeframe. A PIP is not just a list of criticisms; it is meant to provide a structured opportunity for the employee to meet the employer’s performance standards while also providing the employee a warning of the consequences if the employee fails to successfully complete the PIP. PIPs typically include work deadlines, specific work goals, and other work-related steps the employee must take to address the areas of concern identified by the employer in the PIP.
Although there is no specific law in California that directly governs a PIP or limits or restricts an employer’s use of a PIP in any particular circumstance, that does not mean an employer can use a PIP for an illegitimate or unlawful reason, such as discrimination, harassment or retaliation. Generally speaking, an employer must have a “legitimate business reason” to implement a PIP; poor work performance, poor attendance, or similar misconduct at work is almost always the legitimate business reason asserted by employers as the basis for a PIP.
When a PIP is motivated by discrimination or retaliation, that conduct may violate California’s civil rights laws. The California Civil Rights Department explains the protections employees have against discriminatory and retaliatory treatment, including when employers use documentation like a PIP as a pretext.
It’s essential for employees to understand that the primary purpose of a PIP is not to “help” the employee. Instead, the primary purpose of the PIP is to provide clear documentation for the employer’s anticipated termination decision and to “paper the file” by creating legitimate, contemporaneous documentation of poor job performance that warrants termination of employment. Although all employment in California generally is “at-will employment,” meaning that employers may terminate employees without “good cause,” employers often use a PIP to demonstrate that the employer in fact did have good cause for the termination decision, and even offered the employee an opportunity to correct performance issues, which strengthens the employer’s defense in any subsequent lawsuit that might arise from an involuntary termination.
I explain it this way: “When I was a defense lawyer representing large and small corporations throughout California, the advice we gave employers over and over again was this: “Make sure all of your employees are at-will employees, but always act like you are not an at-will employer.” In other words, most employers will not terminate an employee for “no cause” even though doing so is perfectly legal under California law. Most employers will ensure the employer has a solid “legitimate business reason” (i.e. good cause) for each employee termination. Implementing a PIP for a poor performing employee is one of the most effective methods to demonstrate the employer’s business reason for an employee termination.
If you’re a California employee facing a PIP, don’t panic. Although being on a PIP is a serious matter that requires your most diligent and professional response, understanding the dynamics of the PIP that I have set out below can help you successfully navigate yourself through the process.
If you want to learn how to push for a better severance outcome, read my post: How to Maximize Your Severance Offer in California.
The Employer’s Purpose When Issuing a PIP to a California Employee
From an employer’s perspective, a Performance Improvement Plan (PIP) serves multiple purposes beyond simply addressing performance concerns. At its core, the PIP is designed to provide the employer with a documented reason for any subsequent adverse employment action, such as a termination of employment, demotion, or reduction in pay. Simply put, the employer issues a PIP to an employee so that the employer has documented evidence that it made a legitimate business reason for the anticipated adverse employment action, which tends to make any subsequent allegation of discrimination or retaliation by the terminated employee look baseless.
Employers typically use PIPs as part of their overall performance management strategy. By documenting these efforts, employers demonstrate that they are acting in good faith by giving the employee a fair chance to correct performance issues rather than resorting immediately to termination. This can be particularly important in states like California, where employment laws offer significant protections to employees. A well-structured PIP can show that the employer has made reasonable efforts to support the employee before taking further action, such as demotion or termination.
Why Employers Use PIPs in California Instead of Immediate Termination
Employers often choose to use a PIP rather than immediately terminating a poor-performing employee to give the employee a formal opportunity to correct their performance. While at-will employment allows employers to terminate employees without cause, a PIP shows that the employer is acting in good faith by providing support and clear expectations for improvement. As noted above, a PIP also provides the employer with documented evidence of poor work performance by the employee if the employee is terminated. This approach can help protect the employer from potential legal claims, such as wrongful termination or retaliation, by documenting efforts to address performance issues before resorting to termination.
Used successfully, PIPs may also allow employers to avoid the disruption and cost of immediately replacing an employee. If the employee successfully improves, the company retains a trained worker, and the workplace remains stable. Employers also use PIPs to ensure consistency and fairness across the workforce, showing that they treat employees equally and give them opportunities to succeed rather than resorting to termination of unexpected employment.
To learn more about how employers rely on the concept of at-will employment, and how it can sometimes be used to cover up wrongful terminations, read my companion blog, “The At-Will Employment Hoax: How Employers Cover Up Wrongful Termination.”
Section 2: How California Employees Should Respond When a Performance Improvement Plan Is Issued
How a California Employee Should Prepare for a Pending PIP
If you know you are about to be put on a PIP at work, it’s important to take proactive steps to prepare. First, review your recent job performance evaluations or annual reviews, if available. If you do not have copies of your performance reviews, ask your HR representative for an opportunity to review your own personnel file. All employees have the right to review their personnel file, and employers are obligated to give employees the opportunity to review the employee’s own personnel file, including making a copy of the file. Take note of any negative comments or low scores in your performance reviews, including any comments about areas of improvement, etc.
Under California’s personnel file inspection rights, every employee has the legal right to review and obtain copies of the documents their employer keeps in their personnel file. This includes performance reviews, written warnings, attendance records, and other materials often referenced in a PIP. You can review the state’s rules here: California’s personnel file inspection rights.
Gather any documentation that demonstrates your accomplishments or reasons why performance issues may have occurred, such as emails, project updates, or communications with supervisors. This preparation will help you understand where improvement is needed and defend your performance if necessary.
Next, mentally prepare for the upcoming conversation. Approach the situation professionally, acknowledging that a PIP is meant to offer you a structured opportunity to improve. Be ready to listen, ask clarifying questions, take notes, and show a willingness to address the issues raised. By taking these steps, you will be better positioned to navigate the PIP process with a focus on improvement and successful resolution.
How California Employees Should Respond During a PIP Meeting
When you are informed of a Performance Improvement Plan (PIP) during a meeting with management and/or HR, it’s important to remain calm, professional, and receptive. Start by carefully listening to the feedback being provided. Ensure that you fully understand the specific performance issues and the expectations outlined in the PIP. Ask clarifying questions if anything is unclear, including the goals, deadlines, and any support that will be available to help you meet the expectations. It’s important to acknowledge to management and/or HR that you are concerned about the message being conveyed to you. I suggest that employees express that acknowledgment verbally by saying words like: “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 love my job.” Don’t be flippant or tell them to “take this job and shove it!” You are better off with a job and on a PIP than terminated and unemployed, and it is generally easier to find a job if are presently employed compared to if you are terminated. Think of it this way: “Act like you care, even if you don’t.”
It’s also a good idea to take notes during the meeting so you can refer back to the details later. Avoid becoming defensive, even if you disagree with some of the points raised. Instead, focus on clarifying and collaborating with management to ensure that you have a clear understanding of what is required to successfully complete the PIP. Ending the meeting with a constructive and cooperative attitude will help set the tone for a positive path forward.
For more detailed guidance on handling meetings with Human Resources, see my series on dealing with HR:
- Preparing to Meet with HR: Practical Advice
- Meeting with HR: Tips for Employee Success
- After a Difficult Meeting with HR: Advice for Employees
Should a California Employee Submit a Written Response to a PIP?
In response to a Performance Improvement Plan (PIP), submitting a written response or protest may not always be the best course of action. While it’s natural to feel the need to defend yourself against perceived inaccuracies, a written rebuttal often does more harm than good. In my experience, management is under no obligation to read or respond to such documents, and they can be used against you if legal action ensues. Furthermore, most employee-written rebuttals tend to be overly emotional or filled with irrelevant details, which could make you appear unreasonable, confused, and improperly focused.
Instead of submitting a long rebuttal, it’s generally wiser to calmly register your disagreement or objection during the meeting and focus on addressing the PIP’s expectations. For instance, rather than trying to explain why management or HR “got in wrong” during the meeting with a long-winded story, or a list of circumstances and excuses, simply tell the person presenting the PIP that “I disagree with your analysis” or “I disagree with your characterization of my job performance.” In other words, just calmly and politely tell the person that you do not agree, but do not argue.
If you believe the PIP is part of a larger issue threatening your employment, seeking legal advice may be a better option than submitting a detailed protest. By carefully considering your next steps and ensuring you stay professional, you can protect your position and avoid making missteps that could hurt your case later.
What a California Employee Should Do When the PIP Contains Incorrect Facts
If you disagree with the facts upon which the Performance Improvement Plan is based, it’s important to approach the situation carefully and strategically. Begin by calmly gathering evidence that supports your position, such as emails, performance data, or any communications that contradict the issues outlined in the PIP. This documentation can help you present a more accurate picture of your performance and any circumstances that may have impacted it. Using that information, create a timeline or synopsis/summary of the information that you believe supports your explanation and clearly shows why the PIP is inaccurate.
Keep in mind that shorter is better – no one is going to listen to more than a few minutes of explanation, so your entire explanation should be a single page if possible, and never more than 2 pages long. Once you’ve written it down, practice explaining it out loud to a family member or friend, or just to yourself. Practicing what you will say out loud will improve your actual performance during the meeting because you will not be searching for words or thoughts – you will know exactly what to say. It will also make you more credible and believable.
Once you have gathered your evidence, written your short explanation and practiced talking about it out loud, request a follow-up meeting with your supervisor or HR to respectfully discuss your concerns. During this meeting, focus on the specific facts you disagree with and present your evidence in a professional manner. Whatever you do, do not accuse anyone of misconduct during the meeting – don’t accuse the company of discrimination, harassment, retaliation, etc. Instead, your attitude and demeanor should be cooperative – like you are trying to help the company solve the problem of your incorrect and inaccurate PIP. Do your best to stay calm and not get emotional (practice will help with that). Make sure your presentation is short – 15 minutes or less is best. While it may not result in immediate changes to the PIP, it shows that you are engaged and committed to clarifying the situation.
Immediate Steps California Employees Should Take After Receiving a PIP
Immediately after the initial meeting with HR or management about the Performance Improvement Plan (PIP), it’s important to take a few key steps to set yourself up for success:
Step #1: Take Detailed Notes
While the meeting is still fresh in your mind, write down everything that was discussed, including the specific performance issues, expectations, deadlines, and any support that was offered. Document what was said by both you and your employer to ensure you have a clear record. Record the beginning and end time of the meeting and who was present.
Step#2: Review the PIP Thoroughly
Carefully go over the PIP document, making sure you fully understand the goals, timelines, and the standards you are expected to meet. If anything is unclear, reach out to HR or your supervisor for clarification. Make sure you read the entire document, meaning every word on every page. Don’t skip anything.
Step #3: Organize and Plan
Start organizing your tasks and create a plan for how you will meet the objectives outlined in the PIP. Break down the goals into manageable steps, and consider setting personal deadlines ahead of the formal ones to monitor your progress. If you think a particular goal is not attainable or impossible, consider asking your supervisor or HR for advice on how the company envisions you will accomplish the particular goal. Once again, approach the problem in a cooperative manner, not in an accusatory manner. Don’t accuse the company of setting impossible goals; instead, ask the company for instructions, advice and guidance on reaching the goal the company established.
Step#4: Seek Clarification if Needed
If you have any doubts or questions about what is required, it’s important to seek clarification as soon as possible to avoid misunderstandings that could affect your performance.
Should a California Employee Give HR Their Notes During a PIP?
No. You should not give your employer a copy of the notes you have taken, even if requested. Your notes are for your personal use and should be treated as confidential. These notes may contain your observations, internal thoughts, legal strategy, or private information that could be used against you later, particularly if litigation arises.
I always advise: “Treat your notes like an attorney would treat their case file. You need to protect it, not share it.” Sharing them may inadvertently waive certain protections and could weaken your position. If HR or your supervisor asks for a copy, simply respond by saying, “These are my personal notes, and I prefer to keep them private.”
By taking these steps, you can remain focused on addressing the issues and improving your performance while maintaining a professional approach throughout the PIP process.
Section 3: How a California Employee Should Navigate the PIP Process
How California Employees Can Track Progress on PIP Goals
To effectively monitor your progress toward the goals and deadlines outlined in a Performance Improvement Plan, it’s important to take a systematic and proactive approach:
Step#1: Break Down Goals
Start by breaking the PIP goals into smaller, manageable tasks. This makes it easier to track your progress on a step-by-step basis and allows you to focus on specific areas for improvement.
Step #2: Create a Timeline
Set up a personal timeline that aligns with the deadlines in the PIP. Mark the key dates for each goal, and create interim deadlines for yourself to ensure you’re on track. Use tools like calendars, task lists, or project management software to help you stay organized.
Step#3: Schedule Regular Check-in
Proactively request regular check-ins with your supervisor or manager to discuss your progress. These meetings offer a chance to receive feedback, clarify any expectations, and adjust your approach if necessary. Document these conversations and any feedback you receive.
Step #4: Track Measurable Outcomes
For goals that are quantifiable, keep a detailed record of your performance. This could include specific metrics like sales numbers, project completion, or customer feedback, depending on your role. Having this data on hand will help you demonstrate your progress.
Step #5: Seek Feedback
Continuously ask for feedback from your supervisor or colleagues on how you’re performing in relation to the PIP. Being open to constructive criticism and adjusting accordingly shows a commitment to improvement and can provide clarity on where you stand.
By taking these five steps, you can gauge your progress, remain focused on meeting the PIP’s expectations, and improve your chances of successfully completing it.
Can an Employer Tell Co-Workers About a PIP in California?
In general, employers should keep the details of a Performance Improvement Plan confidential and are not obligated to inform your co-workers that you are on a PIP. Disclosing such information to others may violate your privacy and could potentially lead to claims of defamation or retaliation, depending on how the information is shared.
However, in some cases, co-workers may indirectly learn about the PIP if they are involved in supporting your performance improvement, such as through additional training or collaboration. Even so, employers are expected to handle such situations with discretion and professionalism, limiting the sharing of specific details about your performance issues to those with a “need to know.”
If you believe your employer has inappropriately shared information about your PIP, you may want to consult with HR or seek legal advice to determine if your rights have been violated.
Can a PIP Be Extended for California Employees?
Yes, your employer can extend the duration of a Performance Improvement Plan (PIP) before the end of the specified time period if they believe additional time is needed for you to meet the outlined goals. This extension is typically based on the employer’s assessment of your progress. If they feel that, while improvement has been made, it is not yet sufficient, they may choose to extend the PIP to allow more time for you to meet the expectations. Don’t consider an extension to be bad news. In fact, an extension of your PIP is good news – you’re not fired. An extension means the employer does not believe it has sufficient grounds to terminate your employment. That means you have one last chance to keep your job – take action on that opportunity and don’t squander it by grousing about the extension of the PIP.
It’s important to note that employers should communicate any extensions clearly and provide reasons for the decision. If your PIP is extended, make sure to ask for specific feedback on what areas still need improvement and how you can meet those expectations during the extended period. Additionally, if you feel the extension is unreasonable, you may wish to seek guidance from HR or legal counsel to ensure your rights are protected.
Section 4: What California Employees Should Expect After a Performance Improvement Plan
Can a California Employee Have a PIP Removed from Their Personnel File?
While employees can request the removal of a PIP from their personnel file, the decision ultimately rests with the employer. Employers are not legally obligated to remove it, but employees can make their case for why it should be excluded. If the employer refuses to remove your PIP from your personnel file, just drop the issue – no one will ever know about it unless you tell them about it. Generally speaking, no one is entitled to see your personnel file, so it should be a non-issue and certainly not worth antagonizing your employer immediately after you successfully completed the PIP.
Do PIPs Affect Promotions and Raises for California Employees?
Successfully completing a PIP does not automatically disqualify you from future promotions or raises. However, your future performance will likely be closely monitored, and ongoing excellence is essential to overcome any previous concerns. It is not uncommon for an employee that has been on a PIP to be promoted later on, although the promotion may get delayed because of the PIP. Keep in mind that many of the most successful people in business have been fired from a job.
Does a PIP Mean Termination Is Coming for California Employees?
No, being placed on a PIP does not guarantee termination. Many employees successfully meet the expectations of a PIP and continue their employment. It largely depends on your efforts and the nature of the performance issues. That said, getting put on a PIP is a clear sign that the employer is seriously considering termination of employment and that the situation requires your immediate attention.
Can a California Employer Terminate You Before the PIP Ends?
Yes, an employer can terminate your employment before you complete the PIP if they believe there is no improvement or if other factors arise. Employees in California do not have any statutory or common law right to complete a PIP because all employees in California are “at-will employees.”
If you are facing termination or believe your employer may be preparing to fire you, it is critical to take immediate steps to protect your rights. For practical advice on what to do if you are terminated, read my post: “I Just Got Fired: What Should I Do Right Away.”
If you’d like to know how employment lawyers approach severance deals, read my guide: How to Negotiate Severance Like an Employment Lawyer.
What Happens if a California Employee Quits During a PIP?
If you quit before completing a Performance Improvement Plan, it is considered a voluntary resignation, not a termination. Quitting during a PIP does not mean you were fired; it means you chose to leave your position before the process was completed. While you are free to resign at any time, it is important to carefully consider this decision, as it could affect your eligibility for unemployment benefits or weaken any potential claims of wrongful termination if you believe your employer was acting unfairly. My advice is to never resign in lieu of termination – always, always, always make the employer terminate your employment. You will have a much better legal claim if you get fired versus if you quit.
Can a Former Employer Tell Future Employers About a PIP in California?
In general, most employers follow a neutral reference policy, meaning they typically only confirm basic employment details such as your job title, dates of employment, and possibly your eligibility for rehire. It is uncommon for employers to disclose specific details about a Performance Improvement Plan during a reference check, as doing so could expose them to potential legal risks, such as defamation claims.
If you are placed on a Performance Improvement Plan or terminated, your employer may offer you a severance agreement. Before signing anything, it is important to understand your rights and options. For guidance on negotiating a stronger severance package, read my blog: “Effective Severance Agreement Negotiation.”
Does a California Employee Have to Disclose a Past PIP to a New Employer?
You are not legally required to disclose a PIP to a new employer. However, if asked about challenges in your previous role, it’s wise to be honest and explain how you addressed the feedback and improved your performance.
Conclusion: Protect Yourself by Understanding the PIP Process
A Performance Improvement Plan can feel like the beginning of the end, but it doesn’t have to be. By staying professional, documenting everything, and understanding the employer’s strategy, you can improve your chances of keeping your job or building a strong legal position if things go south. Don’t go it alone. The more you understand, the better you’ll navigate this process and protect your career.
If you believe your PIP was issued unfairly, or as part of discrimination, retaliation, or another unlawful motive, contact the Ruggles Law Firm for a free consultation.
To learn more about protecting your rights when facing a Performance Improvement Plan, read my other blog titled: “Performance Improvement Plan: 10 Things Employees Often Get Wrong.”
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.
