1st Circuit Limits PIP Bias Claims Under 2024 Muldrow Standard
Updated
Updated · New England Biz Law Update · Jun 24
1st Circuit Limits PIP Bias Claims Under 2024 Muldrow Standard
1 articles · Updated · New England Biz Law Update · Jun 24
Summary
The 1st U.S. Circuit held that a performance improvement plan can qualify as an adverse employment action only when it changes job terms, adds duties or blocks advancement.
Applying the Supreme Court’s 2024 Muldrow test, the court said Title VII covers actions that leave a worker “worse off,” not only those causing a materially significant disadvantage.
Joanne Walsh’s age-bias claim still failed because her PIP was framed as documented counseling, listed performance problems and improvement steps, and did not cut pay, change title or limit internal opportunities.
The ruling draws a practical line for employers: counseling-style PIPs are unlikely to trigger discrimination liability, while plans tied to demotion, reduced compensation or altered responsibilities may.