Texas Performance Improvement Plan (At-Will / TCHRA-Compliant)

TEXAS PERFORMANCE IMPROVEMENT PLAN (PIP)

CONFIDENTIAL EMPLOYEE RECORD

IMPORTANT NOTICE TO MANAGERS AND HR – TEXAS AT-WILL STATUS

Texas follows the employment-at-will doctrine in its strictest form. Absent a contract for a specific term or a narrow statutory exception, either party may terminate the employment relationship at any time, for any reason or no reason, provided the reason is not unlawful. Montgomery County Hosp. Dist. v. Brown, 965 S.W.2d 501 (Tex. 1998).

A Performance Improvement Plan ("PIP") is NOT legally required in Texas before termination. Issuing a PIP does not modify at-will status or create an implied contract, provided the PIP and employee handbook contain clear at-will disclaimers (Matagorda Cnty. Hosp. Dist. v. Burwell, 189 S.W.3d 738 (Tex. 2006)).

PIPs are used in Texas primarily as:

1. Documentation for defense against TCHRA, ADEA, Title VII, ADA, PWFA, and USERRA discrimination/retaliation claims;
2. Evidence of "misconduct" vs. "termination without cause" in TWC unemployment proceedings under Tex. Lab. Code § 207.044–.048;
3. Coaching and performance management to improve retention.

Managers must ensure PIP issuance is consistent, objective, and not a pretext for unlawful discrimination or retaliation.

1. EMPLOYEE INFORMATION

2. PERFORMANCE DEFICIENCIES

The following performance deficiencies have been identified and must be addressed during the PIP period. Each deficiency is based on objective, documented observations and the job description provided to Employee at the time of hire or promotion.

Deficiency 1

• Area: [Quality / Productivity / Attendance / Conduct / Knowledge / Communication / Other]
• Description: [Specific, factual description with dates, incidents, and measurable shortfalls]
• Expected Standard: [________________________________]
• Actual Performance: [________________________________]
• Impact on Department/Company: [________________________________]

Deficiency 2

[Repeat structure]

Deficiency 3

[Repeat structure]

3. PERFORMANCE EXPECTATIONS AND GOALS

During the PIP period, Employee is expected to meet the following specific, measurable, achievable, relevant, and time-bound (SMART) goals:

Required Behavioral Standards

☐ Arrive at work on time per scheduled start time
☐ Complete assigned tasks by stated deadlines
☐ Respond to communications within [____] business hours
☐ Adhere to Company policies including the Employee Handbook dated [__/__/____]
☐ Maintain professional conduct consistent with Company values
☐ Other: [________________________________]

4. SUPPORT AND RESOURCES PROVIDED

The Company will provide the following support to assist Employee:

☐ Weekly 1:1 meetings with supervisor (scheduled [day/time])
☐ Access to [training program / module / LMS]
☐ Mentorship/shadowing with [________________________________]
☐ Written job aids, SOPs, or process documentation
☐ Reasonable accommodation review (if applicable – see Section 7)
☐ Employee Assistance Program (EAP) referral: [________________________________]
☐ Other: [________________________________]

5. CHECK-IN SCHEDULE

6. CONSEQUENCES OF NON-COMPLETION

Failure to meet the performance expectations by the Review Date may result in further disciplinary action up to and including termination of employment. Consistent with Texas's at-will doctrine, the Company reserves the right to terminate Employee's employment at any time during or after the PIP period, with or without cause and with or without notice, unless such termination would violate an express written agreement, the TCHRA, or other applicable law.

Unemployment Note: If termination occurs, the Texas Workforce Commission will evaluate eligibility under Tex. Lab. Code § 207.044 (misconduct connected with work). Documented PIP failures and progressive discipline support a "work-related misconduct" determination, which may disqualify the claimant from benefits.

Final Wages: Under the Texas Payday Law, Tex. Lab. Code § 61.014, an involuntarily separated employee must be paid in full within six (6) calendar days of termination; a voluntarily separating employee must be paid on the next regularly scheduled payday.

7. NON-DISCRIMINATION, ADA, AND ACCOMMODATION

This PIP is issued for performance reasons and is not based on Employee's race, color, national origin, sex (including pregnancy and childbirth), religion, age (40+), disability, genetic information, military status, or any other class protected under Tex. Lab. Code Ch. 21 (TCHRA), Title VII, ADEA, ADAAA, GINA, USERRA, PWFA, or any other applicable federal or Texas law.

If Employee believes they require a reasonable accommodation to meet the PIP expectations due to a disability, pregnancy, childbirth, or related medical condition, or a sincerely held religious belief, Employee should contact HR immediately at [____________] to engage in the interactive process.

If Employee believes this PIP is the product of discrimination or retaliation, Employee may contact Company HR or file a charge with the Texas Workforce Commission – Civil Rights Division within 180 days (Tex. Lab. Code § 21.202) or the EEOC within 300 days. The Company prohibits retaliation against any employee for making a good-faith complaint.

8. CONFIDENTIALITY AND TRADE SECRETS REMINDER

Employee is reminded of continuing confidentiality obligations under:

• The Company's Employee Confidentiality Agreement dated [__/__/____];
• The Texas Uniform Trade Secrets Act (TUTSA), Tex. Bus. & Com. Code § 134A.001 et seq.;
• Any applicable non-compete, non-solicit, and/or non-disclosure covenants under Tex. Bus. & Com. Code § 15.50.

Regardless of the outcome of this PIP, these obligations continue per the terms of the applicable agreements and Texas law.

9. AT-WILL ACKNOWLEDGMENT

Nothing in this PIP shall be construed as creating an employment contract for any specific duration or as altering the at-will nature of employment. Employment with the Company remains at-will, meaning either the Employee or the Company may terminate the employment relationship at any time, with or without notice, and with or without cause, subject to applicable law. The successful completion of this PIP does not guarantee continued employment.

10. SIGNATURES

Employee Acknowledgment: My signature below confirms that I have received, read, and understand this PIP. My signature does not necessarily indicate agreement with the content, but acknowledges receipt and understanding of the expectations, resources, and consequences described herein.

_______________________________________ Date: [__/__/____]
[EMPLOYEE NAME] – Employee

_______________________________________ Date: [__/__/____]
[SUPERVISOR NAME] – Supervisor

_______________________________________ Date: [__/__/____]
[HR REPRESENTATIVE NAME] – HR

FINAL REVIEW (to be completed at end of PIP period)

Outcome: ☐ Successfully completed – PIP closed ☐ Partial improvement – extend PIP ☐ Unsuccessful – proceed with further discipline/termination

Comments: [________________________________]

_______________________________________
[SUPERVISOR NAME] Date: [__/__/____]

_______________________________________
[HR REPRESENTATIVE] Date: [__/__/____]

Sources and References

• Tex. Lab. Code Ch. 21 (TCHRA) – https://statutes.capitol.texas.gov/Docs/LA/htm/LA.21.htm
• Tex. Lab. Code Ch. 61 (Texas Payday Law)
• Tex. Lab. Code § 207.044–.048 (Unemployment misconduct)
• Tex. Bus. & Com. Code § 15.50 (Non-compete)
• Tex. Bus. & Com. Code Ch. 134A (TUTSA)
• Sabine Pilot Serv. v. Hauck, 687 S.W.2d 733 (Tex. 1985)
• Montgomery County Hosp. Dist. v. Brown, 965 S.W.2d 501 (Tex. 1998)
• Matagorda Cnty. Hosp. Dist. v. Burwell, 189 S.W.3d 738 (Tex. 2006)
• Texas Workforce Commission – https://www.twc.texas.gov/