The Complete Guide to Dollar Tree‘s Employee Termination Policy

As a major discount retailer with over 15,500 stores across the US and Canada, Dollar Tree is one of the largest employers in the retail industry, with more than 193,000 associates as of 2021. If you‘re considering applying for a job at Dollar Tree, or if you‘re a current employee, it‘s crucial to have a clear understanding of the company‘s termination policy.

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In this comprehensive guide, we‘ll provide an in-depth look at the various reasons Dollar Tree may fire an employee, the disciplinary process, your rights, and the best course of action if you believe you were wrongfully terminated. We‘ll also offer some expert tips for resigning professionally and some insights on how Dollar Tree‘s turnover compares to industry benchmarks.

Grounds for Termination at Dollar Tree

According to Dollar Tree‘s Code of Ethics and Standards of Conduct, employees may be terminated for any of the following reasons:

  • Inadequate job performance or failure to meet expectations
  • Excessive absenteeism or tardiness
  • Insubordination or failure to follow a supervisor‘s directives
  • Theft, fraud, or mishandling of company assets
  • Falsifying records or timesheets
  • Harassment, bullying, or discriminatory behavior
  • Physical violence or threatening a coworker
  • Possessing weapons or illegal drugs on company property
  • Disclosing confidential information
  • Violation of safety rules and procedures
  • Any other conduct that is inconsistent with Dollar Tree‘s policies and values

As an employer in an at-will state, Dollar Tree reserves the right to terminate employment at any time, with or without cause or prior notice. However, the company generally follows a progressive disciplinary process to give employees a chance to correct most performance issues before resorting to termination.

The Progressive Disciplinary Process

For most offenses, Dollar Tree will follow a "three strikes" progressive disciplinary process. This involves issuing a series of formal warnings, known as Employee Counseling Reports (ECRs), for infractions or failure to meet performance standards.

The progressive disciplinary steps are as follows:

  1. Verbal Warning: The first step is a verbal discussion between the employee and their supervisor about the issue. The supervisor should clearly explain the problem, outline the expected changes, and inform the employee that further disciplinary action will follow if they don‘t improve. A record of the verbal warning goes in the employee‘s file.

  2. First Written Warning: If the employee fails to correct the issue after the verbal warning, they will receive a formal written ECR. This document describes the performance problem, the specific actions the employee must take, and the consequences of failing to improve, up to and including termination. The employee and manager both sign the ECR.

  3. Second Written Warning: A second ECR is issued if the employee‘s performance still doesn‘t improve after the first written warning. At this stage, the employee will likely be placed on a Performance Improvement Plan (PIP). A PIP is a detailed action plan outlining the metrics the employee must meet to keep their job. Failure to successfully complete the PIP will result in termination.

  4. Termination: If the employee‘s performance doesn‘t improve after the second written warning and PIP, Dollar Tree will move forward with termination. At this point, the employee is issued a final ECR indicating they are being dismissed and will meet with HR to discuss offboarding and their final paycheck.

However, it‘s important to note that for severe infractions like workplace violence, drug use, or theft, employees may be subject to immediate termination without any prior warnings.

Termination Statistics

So just how common is it for Dollar Tree employees to be fired? While the company doesn‘t publicly disclose detailed termination data, we can get an idea based on some key statistics from Dollar Tree‘s annual reports and employee reviews.

According to data from Dollar Tree‘s 2021 fiscal year:

  • The company‘s overall turnover rate was 69%, which includes both voluntary and involuntary terminations. This means over two-thirds of Dollar Tree‘s workforce left the company that year.

  • The turnover rate for store managers was 32%. In other words, nearly 1 in 3 Dollar Tree store managers quit or were fired in 2021.

  • Dollar Tree‘s 90-day retention rate for new hires was 43%. This indicates that more than half of all new Dollar Tree employees quit or are terminated before they reach 90 days of employment.

Additionally, reviews from former Dollar Tree employees on job sites like Indeed and Glassdoor show that being fired for attendance issues is quite common:

  • Among nearly 3,000 Dollar Tree employee reviews on Indeed that mention termination, 29% cite attendance as the reason for being fired.

  • One former Dollar Tree store manager claimed: "You can expect to fire at least 2-3 cashiers every single month for attendance. It‘s just the nature of the job – we have very strict rules and high turnover."

  • Another former employee explained: "Dollar Tree has a zero-tolerance policy for unexcused absences. I got fired after missing three shifts, even though I had doctor‘s notes and followed the call-out procedures."

Wrongful Termination Claims

Although at-will employment laws give companies like Dollar Tree broad discretion over firing decisions, there are certain scenarios where a termination may be considered wrongful and open the door for legal action.

Some examples of wrongful termination include being fired:

  • In retaliation for reporting harassment, discrimination, safety violations, or other unlawful conduct
  • For taking legally protected leave like FMLA or serving on jury duty
  • Due to your race, gender, age, religion, disability or another protected characteristic
  • For refusing to commit an illegal act at your employer‘s request
  • In violation of an employment contract

If you believe you were wrongfully terminated by Dollar Tree, you can file a complaint with the Equal Employment Opportunity Commission (EEOC) or your state labor board. These agencies will investigate to determine if you have grounds for a lawsuit.

However, wrongful termination cases against Dollar Tree can be challenging to win without hard evidence. A review of EEOC complaints and court filings shows that many suits brought by former Dollar Tree employees end up being dismissed or settled out of court.

One notable exception was a disability discrimination case brought by the EEOC on behalf of a former Dollar Tree store manager in 2014. The lawsuit alleged that Dollar Tree had fired the employee for taking medical leave to treat their diabetes. The case went to trial, where a jury awarded the plaintiff $27,565 in back pay and $250,000 in compensatory damages.

To protect yourself from wrongful termination, it‘s important to carefully document any instances of harassment, discrimination, or retaliation in the workplace. If you are fired shortly after making a complaint, this record will be crucial evidence in a wrongful termination claim.

Resigning from Dollar Tree

If you decide to voluntarily leave your job at Dollar Tree, it‘s best practice to submit a written letter of resignation to your manager at least two weeks before your intended last day.

While you are not legally obligated to give advanced notice since Dollar Tree employees work at-will, providing this professional courtesy allows the company time to plan for your replacement and leaves you in good standing for future references.

In your resignation letter, you should include:

  • A clear statement that you are resigning from your position
  • Your last day of work (at least two weeks out)
  • A brief reason for leaving the company (i.e., another job opportunity, going back to school, relocating, etc.)
  • A thank you to your manager and team for the experience

If possible, try to resign in person and then follow up with an email confirming your planned last day. Be prepared for your manager to ask you to review your key job responsibilities so they can be reassigned.

By resigning gracefully, you demonstrate professionalism and leave the door open to potentially work for Dollar Tree again in the future, should you wish to do so.

Why Turnover is High at Dollar Tree

As evidenced by the company‘s 69% annual turnover rate, working at Dollar Tree is often a short-term experience for many employees. But why do so many associates quit or get fired?

Based on reviews from current and former Dollar Tree employees, some of the top reasons for leaving include:

  • Low pay: The average hourly wage for a Dollar Tree sales associate is just $9.76, according to data from Payscale. For many workers, this is not a livable wage, especially in high cost-of-living areas. Over half of all Dollar Tree employee reviews on Indeed cite pay as a con of working for the company.

  • Lack of benefits: While Dollar Tree does offer limited medical, dental, and vision plans to full-time workers, the company scores below average on overall benefits satisfaction. Just 39% of employee reviews on Indeed rate Dollar Tree‘s benefits positively.

  • Stressful work environment: Many Dollar Tree employees describe the stores as understaffed and the workload as overwhelming. Frequent customer complaints, long lines, and pressure to work quickly can make for a high-stress work environment. One former cashier summed it up on Indeed: "Expect to be overworked and underappreciated."

  • Inflexible scheduling: Dollar Tree store associates typically work a rotating schedule, including nights, weekends, and holidays. Many employees report issues getting time off approved or having to work "clopening" shifts (closing the store at night and opening it the next morning). The lack of work-life balance is a common reason for quitting cited in reviews.

  • Inconsistent hours: Most Dollar Tree store positions are part-time, with no guaranteed weekly hours. Employee reviews frequently mention being scheduled for as few as 8-12 hours a week, which makes it difficult to earn a steady paycheck.

  • Feeling disrespected: Unfortunately, many retail workers face rude or abusive behavior from customers. At Dollar Tree, some employees also report feeling belittled or disrespected by managers. A former associate on Indeed stated: "Management was very condescending and treated employees poorly."

Of course, not every Dollar Tree employee has a negative experience. The company does have some satisfied workers who appreciate the friendly coworkers, flexible hours, and employee discounts. But the overall data suggests that Dollar Tree struggles with below-average employee morale and engagement compared to industry benchmarks.

How High Turnover Affects Store Performance

The high churn of employees at Dollar Tree doesn‘t just impact morale – it can also take a significant toll on store-level performance and the customer experience.

Consider these potential impacts of constant turnover:

  • Staffing shortages: When a store is constantly losing employees, it can be difficult to maintain proper coverage. This often leads to longer checkout lines, stocking delays, and lack of customer service. In online reviews, shoppers frequently complain about unstaffed registers and messy, understocked shelves at their local Dollar Tree.

  • Lack of experience: High turnover means that at any given time, a sizable portion of a store‘s staff is likely to be new and still learning the ropes. It takes time for new hires to master tasks like operating the register, answering customer questions, and executing planograms. These skill gaps can result in more errors and slower service.

  • Inconsistent execution: When experienced employees leave, they take institutional knowledge with them. Frequent turnover makes it difficult to maintain consistent execution of standards like upselling, suggestive selling, loss prevention, and store recovery. This can ultimately impact metrics like average transaction value and shrink rate.

  • Lower customer satisfaction: Staffing shortages, inexperienced associates, and inconsistent store standards all add up to a poorer experience for Dollar Tree shoppers. This can translate to lower customer satisfaction scores, fewer repeat visits, and negative word-of-mouth.

While some level of turnover is normal in the retail industry, most experts agree that an annual turnover rate above 60% is cause for concern. According to human resource consulting firm Korn Ferry, the average turnover for part-time retail workers is 76%, while turnover for full-time employees is just 44%.

Dollar Tree‘s 69% turnover rate is about 30 percentage points higher than industry norms for full-time workers. This suggests that even the company‘s core, full-time workforce is at high risk of churn.

To combat high turnover, Dollar Tree has made some recent investments in higher wages and benefits. In 2021, the company raised its average starting pay to $9.50 per hour. Dollar Tree also expanded benefits eligibility to more part-time associates, including offering dental and vision coverage, paid time off, and employee assistance programs.

It remains to be seen if these efforts will be enough to move the needle on retention. But given the high cost of constantly replacing and retraining workers, reducing turnover is likely to remain a key priority for Dollar Tree in the years ahead.

The Offboarding Process

When an employee leaves Dollar Tree, whether voluntarily or involuntarily, they will go through an offboarding process to wrap up administrative loose ends and transition their responsibilities.

A typical offboarding at Dollar Tree may include:

  • Turning in company property like name tags, store keys, and employee handbooks
  • Reviewing the status of benefits like health insurance and 401(k) accounts
  • Providing forwarding contact information for tax forms and final paychecks
  • Conducting an exit interview to understand the reason for leaving
  • Having system access and building security access revoked
  • Being reminded of any non-disclosure agreements or non-compete clauses

For terminated employees, the offboarding meeting is likely to be brief. The manager will explain the reason for the dismissal, present the final ECR, and have the employee sign paperwork acknowledging receipt.

However, if you are resigning, you may have a more in-depth offboarding meeting where your manager asks for feedback on your experience working at Dollar Tree. This is an opportunity to share any insights on how to improve retention and express gratitude for the chance to work for the company.

It‘s important to remain professional during the offboarding process, even if you are disappointed or frustrated about leaving the company. You never know when you may cross paths with a former colleague or need a reference down the line.

Advice for Prospective Employees

If you‘re thinking about applying for a job at Dollar Tree, it‘s important to go in with realistic expectations. While the company can be a good fit for some workers, it‘s not the right environment for everyone.

Here are a few key things to keep in mind:

  • Be prepared for a fast-paced, physically demanding job. Dollar Tree store associates are on their feet for entire shifts, often moving quickly to stock shelves and ring up customers. If you have limited mobility or stamina, the job may be challenging.

  • Have open availability. Dollar Tree store hours can run from early morning to late night, seven days a week. Associates with wide open availability are more likely to be hired and scheduled for more hours. If you need a consistent schedule or have a lot of restrictions on when you can work, it may be difficult to get shifts.

  • Expect to start at or near minimum wage. Dollar Tree‘s starting pay varies by location, but typically ranges from $7.25 to $10 per hour for entry-level roles. You may be able to earn a slightly higher wage based on experience, but significant raises are uncommon.

  • Understand the attendance policy. Dollar Tree has a very strict attendance policy where tardies and unexcused absences can quickly lead to termination. Make sure you have reliable transportation and childcare before taking the job.

  • Take advantage of benefits if you can. If you average at least 30 hours per week, you may be eligible for benefits like health insurance, paid vacation days, and 401(k) with company match. Be sure to enroll as soon as you‘re able to make the most of these perks.

The most successful Dollar Tree employees tend to be upbeat, energetic, and adaptable. If you can stay positive in a hectic environment, you‘ll be more likely to thrive in the role and avoid burnout.

The Bottom Line

At the end of the day, working at Dollar Tree is not for the faint of heart. Like many retail jobs, it can be stressful, tiring, and sometimes thankless. But if you are reliable, hard-working, and able to adhere to the company‘s policies and performance standards, it is possible to succeed and even advance in the organization.

The keys to avoiding termination at Dollar Tree are to:

  1. Consistently show up for shifts on time
  2. Follow all directives from your superiors
  3. Maintain a friendly and professional demeanor
  4. Meet your sales and productivity goals
  5. Abide by the company‘s code of conduct

If you do find yourself being disciplined or terminated, remember that you have rights. Don‘t be afraid to stand up for yourself and pursue a wrongful termination claim if you believe you were fired illegally.

And if you decide the job is not right for you, do your best to resign professionally and thoughtfully. By being proactive and communicative with your manager, you‘ll leave on the best possible terms.

No matter what your experience at Dollar Tree, treat it as an opportunity to learn and grow. The skills you gain in customer service, teamwork, and attention to detail will serve you well in any future career path you choose.