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Placed on PIP? That’s no reason to quit

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in Compensation and Benefits,Human Resources

Employees placed on performance improvement plans (PIP) sometimes suspect that they are about to be fired. But that doesn’t mean they can jump the gun, quit and apply for unemployment compensation.

Recent case: Michelle Yang worked for Wells Fargo as a loan processor. When she was transferred to a different office, she had to handle more complex loans. When it became clear she was having trouble with her new duties, she was placed on a PIP.

Yang called in sick for several days and then applied for unemployment compensation. Wells Fargo opposed benefits, pointing out she hadn’t been terminated until she stopped coming to work.

The court ruled that Yang wasn’t eligible because having to perform better was not a good reason to quit. (Yang v. Wells Fargo, No. A01-2141, Court of Appeals of Minnesota, 2011)

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