T.E.C stands for Threshold Exceed Condition(taken from here) and yes I'd suggest you follow its advice and back up your data, it might be that the drive will continue to function for a good while but it is now no longer working entirely as it should.
Would that be a good enough reason to RMA the drive even though it hasnt failed yet? As far as i know its not 3 years old yet so it should be still covered.
The Mad One, I notice that you are using the unregistered version of Drive Health.
As far as I know the unregistered version doesn't give you the true state of your hard drive as 4 of the SMART monitors are disabled.
I have been using the registered version of Drive Health for a few years now and I have had similar warnings to you on quite a few occasions but they always go away the next time I reboot my computer.
I think the only time to worry is if the same warning came up every time.
Here is a screenshot of mine:
As you can see at the moment it is error free but only last week I had the same warning you had but it hasn't come back yet so I'm not worried besides I make backups every 2 weeks anyway.
Use the Western Digital Data Lifeguard Diagnostic tool for windows and check the SMART status in there. If that shows an error, believe it, if not, then everything is fine .
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