Navigating an Unlawful Termination and the Job Search in NYC
How Performance Improvement Plans Can Shield Employers
A performance improvement plan, often called a PIP, is a tool many employers use when they claim an employee is not meeting expectations. If you are placed on a PIP, your employer outlines specific goals or targets you must meet within a certain timeframe. At first glance, it may seem like a chance to prove your abilities. Yet it can also be part of an employer’s strategy to protect themselves from liability.
Key ways employers might use a PIP to protect their interests include:
- Documenting alleged poor performance. Employers often want a written record showing they gave an employee notice of issues and a chance to improve.
- Avoiding severance or wrongful termination claims. If an employee is fired after failing a PIP, the employer can argue they followed due process.
- Reducing unemployment claims. A documented history of performance warnings may reduce the employer’s risk of having to pay higher unemployment taxes.
Terminations Make Job Searches Tougher
Many employers prefer to claim they had “cause” to fire an employee. When they use cause as a basis for termination, it can leave a black mark on a former employee’s work record. This outcome can make it harder for you to secure future employment. Potential employers sometimes view a cause-based termination as a sign of serious performance or misconduct problems, even if those allegations are exaggerated or unsupported.
How Employers Benefit from a “For Cause” Firing
- Limits severance obligations. If the employer claims they had cause to fire you, they often deny any severance packages.
- Reduces legal exposure. If you later bring a legal claim for wrongful termination, discrimination, or retaliation, the employer can point to their cause-based reason to defend themselves.
- Discourages disputes. Many employees feel too intimidated to challenge a termination that sounds official or serious, especially if they do not realize they have legal rights.
Losing your job under a claim of cause can damage your professional reputation. You may find yourself explaining the situation to prospective employers for months. This obstacle is significant at any level of the job market, whether you are applying for an entry-level position or a high-paying professional role.
Understanding How Long It May Take to Find a New Job
Job-hunting in a competitive market can take much longer than many people expect. This problem only increases when you have a termination for alleged cause on your record. While every situation is unique, it helps to know some general benchmarks and statistics.
One Month of Job Searching per $10,000 in Salary
A common rule of thumb suggests that for every $10,000 in annual earnings you seek, it might take one month of searching. For instance, someone applying for jobs paying around $50,000 a year might expect to look for roughly five months. This is not precise. Some people find new roles faster, especially if their skills are in high demand.
A data scientist earning $140,000 might land a new position in far fewer than 14 months. This is especially true in tech-heavy markets such as Austin or San Francisco. On the other hand, some professionals do face extended searches. Factors like skill set, industry conditions, and economic trends all influence how long it takes to find the right job.
Wall Street Journal Highlights Job Search Challenges
A January 6, 2025, article in The Wall Street Journal titled “Unemployed Office Workers Are Having a Harder Time Finding New Jobs” sheds more light on these issues. Although the U.S. economy added more than two million jobs in the past year, over 1.6 million Americans have been out of work for more than six months. That figure has risen by 50% since late 2022.
The average job search now takes around six months. White-collar sectors, including technology, law, and media, have been hit especially hard. In these industries, layoffs and stricter hiring processes have prolonged the time it takes skilled professionals to secure a new position. This intensifies the challenge for individuals who have been fired for alleged cause.
U.S. Bureau of Labor Statistics Data
Data from the U.S. Bureau of Labor Statistics (BLS) also helps put the current job market in perspective. As of July 2024, the median duration of unemployment was about 20.6 weeks, or roughly five months. This number includes all unemployed workers, even those who are not actively looking. Some are passively exploring options or may have become discouraged.
For many professionals, the search can be even longer if they aim to preserve a certain salary level or remain within their preferred industry. The process can also be delayed by the stigma of having been let go for alleged cause. If a prospective employer hears about a cause-based termination, they might be less willing to schedule an interview. A strong reference from a former manager or colleague can help offset this concern, but navigating this landscape can still be daunting.
The Duty to Mitigate in Employment Discrimination Cases
If you believe you were wrongfully terminated, you may be entitled to damages under federal, state, or local discrimination laws. However, there is an important concept known as the duty to mitigate. This duty requires you to make reasonable efforts to lessen your monetary losses after a wrongful termination.
Courts expect employees to make a genuine attempt to find a new position. Once you find a comparable role, you have to maintain it unless there are valid reasons to quit. You cannot simply turn down or leave a suitable job and still seek full back pay. As one court put it, “in order to fulfill the duty to mitigate, a plaintiff must maintain a suitable job once one has been located.” (Rivera v. Baccarat, Inc., 34 F. Supp. 2d 870, 874 (S.D.N.Y. 1999)).
Sometimes an employee may quit a new job soon after starting. That might lead a judge or jury to question whether the employee truly tried to mitigate losses. The court in Nokaj v. N. E. Dental Mgmt., LLC noted that a voluntary departure from comparable employment for purely personal reasons would not meet the mitigation requirement. But the back pay period might not end if the departure was motivated by unreasonable working conditions or an earnest pursuit of better employment. (Nokaj v. N. E. Dental Mgmt., LLC, No. 16-CV-3035 (KMK), 2019 WL 634656 (S.D.N.Y. Feb. 14, 2019)).
Contact Our New York City Employment Law Firm
If you believe your employer is using a performance improvement plan unfairly or if you have been terminated for alleged cause, it is wise to seek professional counsel. Our firm has seen first-hand how these situations impact employees in technology, law, media, and other sectors.
We offer consultations by video, phone, or in-person. Learn about your options, discuss the nuances of your case, and explore possible legal remedies. Please visit our Contact Us page to schedule a consultation with DeToffol & Gittleman. An experienced New York City employment attorney at our firm can help you navigate the complexity of employment disputes.
Disclaimer
This article is for general information only. It is not legal advice, nor does it create an attorney-client relationship. The information may not reflect the most recent legal developments, and laws often vary by jurisdiction. You should consult a qualified lawyer in your area for advice about your specific situation.
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