Can an employee sue for discrimination after being placed on a PIP?
We are about to put an employee on a Performance Improvement Plan. Can they sue us for employment discrimination? Many employers use Performance Improvement Plans, or “PIPs,” as a way to provide clear guidance and direction to employees. Employees given a PIP still have a job, and typically don’t lose any pay. But can a PIP be the basis for an employment discrimination claim? Until recently, the answer probably was “no.” Many courts in the U.S. had denied such claims, finding that placement on a PIP did not constitute a “material,” or “substantial” harm to the employee. But in 2024, the Supreme Court decision in Muldrow v. City of St. Louis concluded that there is no requirement of materiality or substantial harm to advance a discrimination claim under Title VII - rather, only “some harm” need be shown . And for more information on the impact of that decision, refer to our Littler 2 the Point, What is the impact of Muldrow v. City of St. Louis on discrimination claims ...