Put on a PIP Then Fired: Can You Negotiate Severance in Los Angeles?

You were put on a Performance Improvement Plan. You tried to meet the goals. You may have even thought you were making progress. Then they fired you anyway. And now they're either offering minimal severance or none at all, and you're wondering if you have any leverage.

You probably have more than you think. Here's why.

Most PIPs Are Not About Improvement

Let's be honest about what a PIP usually is. In theory, it's a structured plan to help an underperforming employee get back on track. In practice, at most Los Angeles companies, a PIP is paperwork designed to justify a termination that's already been decided.

HR and management put you on a PIP because they want documentation in your file that says "we tried." This protects the company if you sue for wrongful termination. The goals may be vague, the timeline may be unreasonably short, and your manager may have already started interviewing your replacement before the PIP even began.

This is important because it means the company knows the PIP was theater. They know a jury might see through it. And that awareness gives you leverage.

How to Recognize a Pretextual PIP

Ask yourself these questions:

Were the goals measurable and achievable? A legitimate PIP has clear, specific, measurable objectives. "Improve communication skills" or "demonstrate better teamwork" are subjective targets that let your manager fail you regardless of what you do. Compare that to "close 5 deals this quarter" or "reduce ticket resolution time to under 4 hours."

Did the PIP come right after you did something the company didn't like? If you filed a complaint about harassment, requested accommodations, took medical leave, or reported legal violations, and the PIP showed up shortly after, the timing tells a story. A PIP that follows a protected activity is a red flag for retaliation.

Were you treated differently than colleagues? If other people on your team have similar performance issues and weren't put on PIPs, that suggests the PIP was targeting you specifically. This is especially significant if you're in a protected class under California's Fair Employment and Housing Act (FEHA): race, gender, age, disability, sexual orientation, religion, national origin, and more.

Was the timeline realistic? A 30-day PIP for goals that would normally take 6 months to achieve is designed to fail. The company is building a paper trail, not giving you a genuine opportunity.

Why Employers Still Offer Severance After a PIP

If the company just fired you for poor performance, why would they offer you any money at all? Because they want a release of claims. And they want a release of claims because they know the PIP might not hold up.

Your employer's lawyers understand that pretextual PIPs are exactly the kind of evidence that employment attorneys love to present to a jury. "Your Honor, the plaintiff had excellent reviews for four years. She filed a complaint about her supervisor. Three weeks later, she was put on a PIP with vague goals and a 30-day deadline. She was terminated at the end of the 30 days."

That's a story a jury understands. The severance agreement is the company buying your silence and your release. If they're offering severance, they already believe there's risk.

Your Leverage Points

Retaliation claims. If the PIP followed a protected activity (EEOC complaint, harassment report, FMLA/CFRA leave, disability accommodation request, whistleblowing), you may have a retaliation claim. These are some of the strongest employment claims in California.

Discrimination claims. Under FEHA, if you can show the PIP was motivated by a protected characteristic and similarly situated employees outside your protected class weren't subjected to PIPs, you have a discrimination argument.

The PIP itself as evidence. Vague goals, unrealistic timelines, and subjective evaluations are all evidence that the PIP was pretextual. An employment lawyer can evaluate whether your PIP supports a claim.

Your prior performance record. Years of positive reviews followed by a sudden PIP undermines the company's claim that you were underperforming. The more dramatic the contrast, the stronger your position.

How to Negotiate

Don't accept the first offer. If your employer is offering severance after a PIP termination, they've already decided they want a release. That means there's room to negotiate.

Start by gathering your evidence: prior performance reviews, emails praising your work, the PIP document itself (note the vague goals and short timeline), and the timeline of any protected activity that preceded the PIP.

Consider having an attorney send a response letter that outlines your potential claims without making threats. Something like: "My client has significant concerns about the timing and basis for the PIP relative to her recent FMLA leave request. Before responding to the severance offer, we'd like to discuss an appropriate resolution."

This signals that you understand the leverage without being inflammatory. Companies respond to this kind of communication because their lawyers know exactly what it means.

What to Do Right Now

Don't sign anything yet. You typically have at least 21 days to review a severance agreement (45 days if you're 40+ and part of a group termination under the OWBPA). Use that time.

Document everything you remember about the PIP process: when it started, what the goals were, how they were evaluated, what your prior reviews said, and whether anything protected happened before the PIP was issued.

Talk to a Los Angeles employment attorney. Many PIP-to-termination situations have more leverage than the employee realizes, and a lawyer can evaluate your specific facts. Free consultations for employees throughout Los Angeles.