Each year, in businesses big and small, workers meet with their bosses and review the workers' performances. They go by many names, such as "performance reviews," "appraisals" and "evaluations." They're typically designed to show employees' strengths and weaknesses. In addition, they're usually tied to raises and promotions. However, there's no guarantee good reviews will result in either. While employee evaluations are generally not required by law, they sometimes lead to unwanted legal problems.

Employee Evaluation Formats

There's no standard format for employee evaluations. However, they generally fall into one of three categories:

  • A written form on which your supervisor or boss makes notes on your performance for the past year. This form will include a variety of work performance details, such as whether you met required quotas or showed up on time regularly. The form may or may not include space for you to make comments
  • A written series of forms requiring you to rate your own performance. This may be on matters such as meeting quotas, contributing to the company's growth and special achievements. These forms typically involve space for your supervisor to rate your performance in the exact same areas
  • An informal meeting with your supervisor where you simply talk about your performance. A written record may or may not be made during the meeting

Who Uses Employee Evaluations?

Federal, state and local government employers are usually required by law to do performance reviews on a regular basis. The laws usually specify when, how often and what format must be used.

As for private employers, there's no legal requirement for employee evaluations. They're completely voluntary. As a practical matter, many employers, big and small, use performance reviews.

Why? It's good business. They help make sure the business stays efficient and profitable. They help employers retain good employees and attract new talent. They help to make sure employees are "pulling their weight." Evaluations may lead to rearranging or changing employees' tasks and duties, or even termination for employees with records of poor performance.

Employee Evaluation Legal Issues

There are some legal issues to keep in mind with performance reviews. If a private employer chooses to use them, state laws may require that they be placed in the workers' employment records or files. In addition, the laws may give employees the right to read and copy those records at anytime, even after they quit or have been fired. California is an example of a state that grants these rights to employees.

Another area of concern is potential discrimination claims by current and former employees. Did you have a good performance review but didn't get a raise or the promotion you were after? Unless you have an employment contract stating otherwise, you don't have a legal right to a raise. In fact, you don't even have a right to your job since your employment is at-will.

There have been many cases where workers claim they were discriminated against because of their gender, race, age or some other protected characteristic. They often use performance appraisals as "proof." For example, a male employee who receives a raise may share his good review with a female coworker who didn't get a raise but has a similarly good review. This may land the employer in court to explain why the different treatment wasn't discrimination under the law.

Any employee review process needs to be carefully designed to make sure employees are treated fairly, objectively and equally by the same set of standards and goals. Employee reviews can be great tools if they're used to acknowledge and, if possible, reward good performances.

Even if you get a good review, it doesn't guarantee that you'll keep your job in a bad economy. Especially in tough times, there may be legitimate business reasons for not getting a raise or promotion. Low consumer spending can lead to freezes on salary and reductions in work hours.

You should try to figure out ways to improve your job performance. Discuss goals and expectations with your manager. Give and receive feedback throughout the entire process. Any improvement in your performance will likely show on your employee evaluation. Receiving good evaluations is the best way to keep your job or increase your salary.

Questions for Your Attorney

  • Can I be fired if I refuse to sign a performance appraisal that I don't agree with?
  • Can my old employer share my performance reviews with another potential employer?
  • Can I view my employee evaluations anytime I want to or do I need permission from my employer?