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Justices’ New Bias Test Puts Performance Reviews in Legal Bind

Lawsuits from workers challenging the legality of performance improvement plans or negative reviews are testing the bounds of a new worker-friendly US Supreme Court standard for assessing workplace discrimination claims.

A rising number of cases—some supported by the US Equal Employment Opportunity Commission—against companies like Amazon.com Inc. and United Airlines are pushing courts to clarify when a PIP placement or an unfavorable performance review constitutes an adverse employment action that can be brought to trial.

“I think you have a lot of employees who are now using this decision to say well, ‘Wait a minute. Me being placed on a performance improvement plan is at least ‘some harm’ to support my discrimination claim,’” said Marissa Mastroianni, an employment attorney at management-side firm Cole Schotz PC.

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As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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