Corrective Action & Progressive Discipline Policy

Purpose

To give managers a fair, consistent, and well-documented framework for addressing employee performance and conduct problems — and to give employees a clear opportunity to correct deficiencies and improve to an acceptable level.

Scope

Applies to all employees. Each situation is different, and the Company reserves the right to determine the appropriate response case by case. Depending on the severity of the issue, any step below may be shortened, combined, or omitted.

When corrective action may apply

Corrective action may be warranted for issues including, but not limited to:

• Substandard job performance
• Violation of Company rules, policies, or standards of conduct
• Conduct that constitutes harassment or unlawful bias of any kind
• Gross negligence
• Violation of a confidentiality or invention-assignment agreement
• Criminal conduct (involve the Legal department)

Employment at will. Nothing in this policy creates an express or implied contract of employment or alters the at-will employment relationship. Employment is at will: either the employee or the Company may end the relationship at any time, with or without cause or notice, except where prohibited by law. Only an authorized officer of the Company may alter at-will status, and only in a signed writing. (At-will rules and exceptions vary by state — confirm with counsel.)

Roles and responsibilities

Managers

1. Foster an effective, productive work environment.
2. Before acting, confirm that performance is in fact substandard, that it is worse than that of employees not regarded as problems, that the employee has been put on notice of the specific deficiencies, and that the employee has been given an opportunity to improve.
3. Take prompt, private disciplinary action commensurate with the problem.
4. Administer discipline consistently and in accordance with applicable federal, state, and local law.
5. For most performance issues, use training and counseling first; reserve formal assessment or removal for severe cases. Review the planned course of action with Human Resources before acting, except in an emergency.

Employees

• Follow Company policy and established standards of conduct.
• Ensure personal conduct does not jeopardize their own job performance or disrupt that of others.

Human Resources

• Maintain and refine the procedures for handling performance problems and advise managers throughout.
• Counsel managers on the performance-review process and on corrective action plans.

The progressive sequence

Most performance problems are addressed in escalating steps. Earlier steps are skipped only where the seriousness of the situation warrants.

1. Coaching and verbal counseling
2. Written counseling
3. Corrective Action Plan (formal, documented)
4. Final Warning
5. Termination

1–2. Coaching, verbal, and written counseling

Most issues should first be addressed through coaching, verbal counseling, and — if needed — written counseling that documents the deficiency, the expectation, and the timeframe to improve.

3. Corrective Action Plan

If counseling has not remedied the deficiency, a formal Corrective Action Plan may be warranted.

Preparing the plan — review with your manager: current performance issues, all prior counseling efforts, and all prior documentation. The written plan should:

• Be put in writing to the employee.
• State that the employee's failure to perform to expectations is the reason for the action.
• List each performance deficiency in detail.
• Recap previous occasions when the deficiencies were identified.
• Explain the specific corrective actions required to improve.
• State that failure to improve may result in further action, up to and including termination.
• Outline how progress will be monitored and followed up.

The corrective-action meeting — after your manager approves the written plan, meet with the employee:

#	Step
1	Have a third person present — your manager, an HR representative, or another member of management.
2	Review the plan point by point; ensure the employee understands its purpose is to provide a framework for improvement.
3	Give the employee an opportunity to respond to each point and explain their perspective.
4	Offer guidance and support, while making clear that improving to an acceptable level is ultimately the employee's responsibility.
5	Stress the seriousness of the plan and that failure to improve could lead to further action, up to and including termination.
6	Have the employee sign the plan; they may respond in writing.
7	Establish follow-up meetings; keep dated notes of each, recording specific items discussed.
8	Explain that an interim performance review may be conducted to assess progress.
9	Provide the employee a signed copy of the plan.

Concluding the plan — after a reasonable period, conduct an interim performance review (first reviewed with your manager and HR) covering all aspects of performance and the specific issues in the plan, with documentation of progress. If performance has deteriorated, the employee may be moved to Final Warning Status or continued on the plan, with additional written notice of the areas still requiring improvement.

4. Final Warning Status

Recommend Final Warning when performance has not improved to an acceptable level, or more serious discipline is required — after reviewing all current and prior performance with your manager and HR.

A Final Warning follows the same approach as a Corrective Action Plan, except the written memo must clearly state that this is the final step prior to termination, and that if performance does not improve the employee will be terminated. Set time-bound follow-up meetings and conduct an interim review as above. If performance improves and the deficiencies no longer exist, document that clearly.

5. Termination

If the employee has not improved to the expectations set in the Final Warning memo, conduct a thorough review of current and prior performance with your manager and HR. If termination is approved, HR will advise on conducting the termination meeting and making separation arrangements.

Documentation and consistency (best practice)

• Document each step contemporaneously — dates, specifics, and the employee's response.
• Apply standards consistently across similar situations to reduce discrimination risk.
• Never discipline an employee for legally protected activity (e.g., protected leave, complaints of discrimination or harassment, or other protected conduct). When in doubt, consult HR or counsel before acting.