Losing your job can feel overwhelming. Beyond the emotional impact, there are practical concerns: How will you pay your bills? What happens to your health insurance? Will you receive severance pay?
Understanding your rights after being laid off is crucial. Federal and state laws provide protections that can ease your transition and help you maintain financial stability. Whether you’ve just received notice or are navigating the aftermath, knowing what you’re entitled to can make all the difference to you and your family.
The employment law attorneys at Barrett & Farahany will explain your immediate rights, health insurance options, severance considerations, and legal protections. If you believe your rights have been violated, consulting an employment attorney can help you take the next steps.
Your Immediate Rights After a Layoff
When you’re laid off, certain rights take effect immediately. These include your final paycheck and eligibility for unemployment benefits.
Final Paycheck
You are entitled to receive your final paycheck, which should include all wages earned up to your last day of work. The timeframe for receiving this payment depends on state law. Some states require employers to provide it immediately upon termination, while others allow payment on the next regular payday.
Your final paycheck should also include compensation for any accrued, unused vacation or paid time off (PTO), depending on your state’s laws and company policy. If your employer fails to provide your final paycheck within the required timeframe, you may have grounds to file a wage claim.
Unemployment Benefits
Unemployment benefits provide temporary financial assistance to workers who lose their jobs through no fault of their own. Eligibility requirements vary by state but generally include:
- Working a minimum number of hours or earning a certain amount during a specific period (known as the “base period“)
- Being unemployed or working reduced hours
- Being able and available to work
- Actively seeking employment
To apply, visit your state’s unemployment office website or contact them directly. Be prepared to provide information about your previous employment, including dates of employment, reason for separation, and wage history. Processing times vary, but applying as soon as possible ensures you receive benefits without unnecessary delays.
If you don’t receive the benefits that you feel you should, it could have to do with how your employer filed the end of your termination. If it has been incorrectly filed, the attorneys at Barrett & Farahany can help.
Health Insurance Rights: Understanding COBRA
Losing your job often means losing your employer-sponsored health insurance. However, the Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to continue your group health coverage for a limited time.
How COBRA Works
COBRA enables you to maintain the same health insurance plan you had while employed, typically for up to 18 months. This applies to companies with 20 or more employees. You’ll be responsible for paying the full premium, including the portion your employer previously covered, plus a small administrative fee (up to 2%).
After a layoff, you must receive COBRA notice. Employers and plan administrators generally have up to 44 days from the qualifying event to send this information. You then have 60 days to decide whether to elect COBRA coverage. If you choose to enroll, your coverage will be retroactive to the day after your employer-sponsored insurance ended.
While COBRA can be expensive, it may be the best option if you have ongoing medical needs or are in the middle of treatment. Alternatively, explore health insurance options through the Health Insurance Marketplace, which may offer more affordable plans depending on your income.
Severance Pay: What You Need to Know
Severance pay is compensation some employers offer to employees upon termination. It’s not required by federal law, but you may be entitled to it under certain circumstances.
What Is Severance Pay?
Severance pay is typically offered as a lump sum or in periodic payments. The amount often depends on factors such as length of employment, position, and company policy. Some employers provide one to two weeks of pay for each year of service. Severance may be included in:
- Your employment contract
- Company policy or employee handbook
- A union agreement
If your employer offers severance, review the terms carefully. Severance agreements often include conditions, such as waiving your right to sue the company or agreeing to a non-disparagement clause.
Reviewing Your Severance Agreement
Before signing a severance agreement, consider the following:
- What are you giving up? Many agreements require you to release your employer from future legal claims, including discrimination or wrongful termination.
- Are there restrictive covenants? Some agreements include non-compete or non-solicitation clauses that limit your future employment options.
- Is the offer negotiable? Severance terms are often negotiable, especially if you have leverage or believe your layoff was unlawful.
Consulting an employment attorney before signing can help you understand the implications and negotiate better terms if necessary.
The WARN Act: Know Your Rights for Mass Layoffs
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide advance notice of mass layoffs or plant closings. It applies to companies with 100 or more full-time employees. It requires employers to give 60 days’ written notice before:
- A mass layoff affecting 50 or more employees at a single site
- A plant closing that results in job loss for 50 or more employees within 30 days
If your employer fails to provide the required notice, you may be entitled to back pay and benefits for up to 60 days. Exceptions exist for unforeseen business circumstances or natural disasters, but employers must prove these conditions apply.
Take Control of Your Next Steps
Being laid off is challenging, but understanding your rights can help you move forward with confidence. You’re entitled to your final paycheck, unemployment benefits, and potentially continued health coverage through COBRA. If offered, carefully review any severance agreement before signing. Federal laws like the WARN Act and anti-discrimination statutes provide additional protections.
If you believe your workplace rights were violated when you were laid off, contact the employment law attorneys at Barrett & Farahany today. With over 240 years of combined experience and a national reputation for excellence, our team is dedicated exclusively to protecting employee rights. We handle cases across nine states and the District of Columbia, and we’re here to help you understand your options and take action.
