Fired or Laid Off › Laid off

Just Got Laid Off? Your Step-by-Step Next Moves

A layoff isn’t about your performance — it’s a business cutting costs. That “no fault” status actually works in your favor for unemployment and severance. Here’s how to make the most of it.

Step by step: what to do

1. Read the severance offer before you sign. Layoff packages usually tie severance to a release of claims. You don’t have to sign on the spot — federal law often gives older workers up to 21 days to consider it and 7 days to revoke.
2. Check whether you were owed WARN notice. Under the federal WARN Act, employers with 100+ workers generally must give 60 days’ written notice of a mass layoff or plant closing. If you got “laid off without warning,” a missing notice may entitle you to back pay.
3. File for unemployment immediately. Layoffs are no-fault, so you’re almost always eligible. File the same week — benefits typically start from when you file, not from your last day.
4. Negotiate the severance. Severance is often negotiable: more weeks of pay, a few extra months of health coverage, keeping your laptop, or a written positive reference. Ask — the worst case is they say no.
5. Lock in health coverage. Your layoff opens a special enrollment window for ACA marketplace plans. Compare those subsidies against COBRA, which continues your exact plan but at full (often high) cost.
6. Roll over your 401(k) — don’t cash it out. Cashing out triggers taxes plus an early-withdrawal penalty. Roll the balance into an IRA or your next employer’s plan to keep it growing untaxed.

Know your rights

• Layoffs are no-fault, which gives you strong unemployment eligibility.
• WARN Act: large employers generally owe 60 days’ notice of mass layoffs; a violation can mean back pay and benefits.
• Severance is not legally required unless it was promised — but it is frequently negotiable.

Frequently asked questions

Am I eligible for unemployment after a layoff?

Almost always. A layoff is the textbook no-fault separation, so states routinely approve benefits. File as soon as you’re notified.

Can I negotiate my severance?

Yes. Severance terms are rarely fixed. Counter for more weeks, extended health coverage, accelerated equity vesting, or a positive reference letter. Get any agreement in writing.

What is the WARN Act and does it apply to me?

The Worker Adjustment and Retraining Notification Act requires most employers with 100+ employees to give 60 days’ notice of a mass layoff. Several states have stricter “mini-WARN” laws. If you got no notice, you may be owed up to 60 days of pay.

Other situations

This page is general information, not legal advice. Laws vary by state and change over time. For advice about your specific situation, consult a licensed employment attorney in your state.