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When a PIP becomes the retaliation claim

 

Performance improvement plans are often treated as neutral management tools. This case shows how quickly a PIP can become the centerpiece of a retaliation claim once an employee raises equity concerns.


TL;DR: After an employee raised “boys’ club” concerns, her employer placed her on a performance improvement plan about two months later, followed by a negative rating, denial of a raise and bonus, and eventual termination. The court denied summary judgment on retaliation, holding that a jury could find the PIP itself was a materially adverse action and that the sequence of discipline could support a retaliatory pattern.

📄 Read the decision


Informal complaints, then performance management

The employee had worked for the company for more than twenty years with no prior corrective action or documented performance issues. That changed after she began reporting to a new supervisor.

According to the record, she complained that she was being excluded from meetings, denied support, and treated differently than male peers. In conversations with management and HR, she described the environment as a “boys’ club.” In at least one discussion, her supervisor understood the comment to mean she felt excluded from a clique of managers who were not providing her appropriate resources.

About two months later, the employer placed her on a performance improvement plan, citing cost, inventory, and communication issues. The PIP was initially set for three weeks, shorter than the company’s typical timeframe, and later extended.

Over the following months, the employee received a below-target performance rating, was denied a raise and bonus, and was ultimately terminated. The employer cited performance issues across several client accounts, including billing and inventory problems and the employee’s failure to timely forward a client email raising concerns.

When “boys’ club” becomes protected activity

The employer argued that references to a “boys’ club” were too vague to constitute protected activity and reflected only general workplace frustration. According to the employer, the employee never clearly opposed unlawful discrimination.

The court rejected that argument at summary judgment. It held that a jury could find decisionmakers understood the “boys’ club” comments as complaints about favorable treatment of male employees. The court emphasized that retaliation liability can attach even if an employer mistakenly believes an employee engaged in protected activity and acts on that belief.

That perception – how management understood the complaint – was enough to move the retaliation claim forward.

Why the PIP mattered

The employer argued that too much time passed between the employee’s last complaint and her termination to support retaliation. The court agreed that the several-month gap, standing alone, was not enough.

But termination was not the only action at issue. The court emphasized a point employers often underestimate: for retaliation claims, a performance improvement plan can itself be a materially adverse employment action.

The retaliation standard is broader than the discrimination standard. An action may qualify if it could dissuade a reasonable employee from making or supporting a discrimination complaint. Applying that standard, the court held a jury could find placement on a PIP would have that effect.

That shifted the timing analysis. The roughly two-month gap between the complaints and the PIP was close enough to permit an inference of causation. The court evaluated the sequence as a whole – the PIP, the negative rating, the denial of compensation, and the termination – rather than viewing each step in isolation.

Employer takeaways

  • Performance management can continue after a complaint. Employees do not become discipline-proof after raising concerns, but HR should anticipate closer scrutiny and plan accordingly.
  • Post-complaint PIPs deserve extra care. In retaliation cases, a PIP may be treated as materially adverse if it could discourage a reasonable employee from speaking up.
  • Timing is measured across the sequence, not just at termination. Courts may analyze causation from the complaint to the PIP and through later performance actions.
  • Process consistency matters more than labels. Shortened PIP timelines, incomplete follow-through, deviations from HR guidance, or inconsistent internal opportunities are what create jury risk.

The bottom line

This case is not about chilling warranted discipline. It is about how performance management is evaluated once an employee raises equity concerns. When a PIP closely follows those concerns, courts are far more willing to let a jury decide whether the employer’s process crossed into retaliation.