Work & Career

Laid Off? Now What

Losing your job is stressful. Breathe. Then work through this guide. There are things you need to do today, this week, and this month — in that order.

// First 48 Hours

Don't make any big decisions right now. Focus on these essentials first.

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Don't sign anything on the spot
If your employer hands you a severance agreement or separation paperwork, you are NOT required to sign it immediately. In most cases, you have 21 days to review (40 days if you're over 40 — Older Workers Benefit Protection Act). Take the paperwork home. Read it. If it involves waiving your rights, consider having a lawyer look at it.
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Get everything in writing
Ask for your termination reason in writing. Ask if you're being laid off or fired (this matters for unemployment — see below). Get your final pay date, any severance details, COBRA information, and when your benefits end. If they won't put it in writing, send yourself an email summarizing the conversation.
3
Secure your stuff
Before you lose access: save any personal files from your work computer, forward important personal emails to your personal account, write down professional contacts and references. Do NOT take proprietary company information, client lists, or trade secrets — that can get you sued.
4
File for unemployment — TODAY
Don't wait. File on the same day you lose your job if possible. Benefits don't start until you file, and the first payment can take 2-4 weeks. Every state lets you file online at your state's unemployment website. You'll need: Social Security number, driver's license, employer's name and address, dates of employment, and reason for separation.
5
Figure out health insurance
Your employer-sponsored health insurance typically ends at the end of the month you're terminated (some end the same day — ask). You have three options: COBRA (continue your employer's plan for up to 18 months, but you pay the full premium — it's expensive), marketplace/ACA plan (losing your job is a qualifying life event — you get 60 days to enroll), or a parent's plan (if you're under 26). See our Health Insurance 101 tool.
// Laid Off vs. Fired — It Matters

Laid Off

Reason: Company decision — budget cuts, restructuring, position eliminated. Not your fault.

Unemployment: You almost always qualify.

Severance: More likely to be offered.

Rehire: Often eligible for rehire.

Reference: Employer usually gives neutral or positive reference.

Fired

Reason: Performance, behavior, policy violation. Related to something you did (or didn't do).

Unemployment: You MAY still qualify — depends on the reason. Fired for poor performance? Usually yes. Fired for misconduct? Usually no.

Severance: Rarely offered.

Reference: Employer may only confirm dates of employment.

Important: If you were fired and believe it was illegal (discrimination, retaliation for reporting safety violations, exercising legal rights like FMLA), you may have a wrongful termination claim. Document everything and consider consulting an employment lawyer — many offer free consultations.
// Your Rights
Final Paycheck
Your employer MUST pay you for all hours worked, including overtime. Many states require the final paycheck on your last day or within 72 hours. California requires same-day payment if you're fired. Check your state's wage payment law. Your employer must also pay out any accrued, unused PTO/vacation IF their policy or your contract says they will (this varies by state — some require it, some don't).
WARN Act (Large Layoffs)
If your company has 100+ employees and lays off 50+ people at once, the federal WARN Act requires 60 days advance notice. If they didn't give notice, they may owe you 60 days of pay and benefits. Some states have their own WARN Acts with stricter requirements (California, New York, Illinois, and others). If you were part of a mass layoff with no warning, look into this.
Severance
Severance is NOT legally required (unless you have a contract that promises it). It's typically offered for layoffs, not firings. Common packages: 1-2 weeks of pay per year of service. Before signing: check what you're waiving (often the right to sue), whether it affects your unemployment eligibility, and if there's a non-compete clause. You can negotiate — especially the amount, health insurance continuation, and non-compete terms. They expect you to negotiate.
COBRA
COBRA lets you keep your employer's health insurance for up to 18 months — but you pay the FULL premium (what you paid + what your employer paid), plus a 2% admin fee. This often means $500-$700+/month for individual coverage. Your employer must send you COBRA election paperwork within 14 days. You have 60 days to decide. In many cases, an ACA marketplace plan is cheaper — compare before choosing COBRA.
401(k) and Retirement
Your 401(k) is YOUR money — your employer can't take it. You have four options: leave it with your old employer (fine if the plan has good funds), roll it into a new employer's 401(k), roll it into a personal IRA (most flexibility), or cash it out (worst option — you'll pay income tax + 10% penalty if under 59.5). Never cash out your retirement unless you're about to be homeless. The tax hit is brutal.
// Unemployment Benefits
How Unemployment Works
Who qualifies: Generally, people who lost their job through no fault of their own (laid off, company closed, hours cut significantly). Fired for misconduct usually disqualifies you. Quitting usually disqualifies you — unless you quit for "good cause" (unsafe conditions, illegal activity, severe pay cut).

How much: Typically 40-60% of your previous weekly earnings, up to a state maximum. Most states cap between $300-$900/week. The formula varies by state.

How long: Usually 26 weeks (6 months). Some states offer less (12-20 weeks). Extensions may be available during high unemployment periods.

Requirements while collecting: You must actively search for work (most states require 3+ job contacts per week), be available to work, and report any earnings. You'll file a weekly or biweekly claim to keep receiving benefits. If you turn down a reasonable job offer, you can lose benefits.
// How Long Will Your Money Last?

Enter your savings and monthly expenses to see your runway — with and without unemployment benefits.

// Your Action Checklist

Tap to check off as you go. This resets when you leave the page — it's just for tracking right now.

// Common Questions
You're Going to Be OK
Losing a job feels devastating in the moment. But most people find a new job within 2-3 months. Use this time to breathe, regroup, and possibly upgrade. Update your resume, practice your interview answers, and know that this is temporary. Millions of people have been exactly where you are and came out the other side.
Sources: U.S. Department of Labor (dol.gov), COBRA continuation coverage (dol.gov/cobra), WARN Act (dol.gov/warn), state unemployment insurance programs, Fair Labor Standards Act. State-specific rules vary significantly. This is general guidance — not legal advice.