What Are My Rights After a Layoff?

After a layoff, emotions run high. But despite the urge to respond negatively or immediately start the job-application process, you may be entitled to certain rights. Experts recommend you apply for unemployment benefits, inquire about COBRA, and make sure you receive your last paycheck and any unused PTO. Finally, if you have severance, seek the counsel of a lawyer. 

By Helen Harris

You’ve heard of mass layoffs, but you never thought it would happen to you. Emotions are running high, and you’re battling feelings from anger to sadness to confusion. Meanwhile, you’re provided with a box to collect your things.

“Is this right?” 

“Can they really do this?”

“Don’t I have any rights in this situation?” 

You hear your laid-off cohorts murmuring sentiments along these lines. No one knows the answers at that moment. 

Take Time To Process the Layoff

Take some time to process what just happened and to begin answering all of these questions. Eric Meyer, employment lawyer and partner at FisherBroyles, LLP states that first, you should take a moment (or a day or two) to fully process the gravity of the situation. 

“The first thing you want to do is pause and take a breath,” said Meyer. “What you've just gone through is pretty shocking. “Take a little to let the emotion of what has just happened wash over you and let that subside for a bit. You don't need to do anything as a matter of law. But after that wave [of emotion] has subsided, there are a couple of things you should be thinking about.” 

Jon Hyman, attorney for employers and craft breweries and employment law influencer, seconds this advice, stating that this time to gather yourself is critical for you  to properly move forward with your ultimate goal: Finding a new job. 

But between the time you’ve been laid off and the time you land your next job, there are certain rights and benefits you want to be aware of, such as unemployment, health coverage, any remaining pay and PTO, and your severance package if applicable. 

Understanding a Mass Layoff 

To first understand the unemployment benefits and rights you are entitled to post-layoff, you should be clear on whether your company enacted a mass layoff or not. 

As described by the Society for Human Resource Management (SHRM), a mass layoff is when at least 500 employees (excluding part-time employees) lose employment during any 30-day period or if at least 33% of the employees at a single site of employment lose employment during any 30-day period, unless that percentage amounts to fewer than 50 workers.

And if there is a mass layoff, you are required to receive formal notification of the company’s decision at least 60 days before the layoff. SHRM explains that this is in accordance with the worker adjustment and retraining notification act (WARN) — which was passed to minimize harm to workers and communities caused by mass layoffs and plant closings. 

“In a true mass layoff, as WARN defines it, employers have to provide certain information to the employees in the termination letter in advance of the layoff,” said Meyer. “But otherwise, if it's just a standard termination letter, I advise employers to be honest in articulating the reason or reasons as to why someone's employment is ending.”

Moving past the lay-off letter, there are other things you should consider, regardless of whether your layoff was the result of a mass layoff or not. 

Understanding the Rights You May Be Entitled To after a Layoff  

One of the first things you should consider doing after being laid off is applying for unemployment insurance — and Hyman states it’s never too early to start this process. 

Also on the forefront of your mind is likely the severance package. If you signed an employment contract at the beginning of your job and it explicitly stated that you would get a severance package at the end of your time with the company, then you will. However, it’s important to understand that a company is never required to pay severance if it’s not in a contract. 

Meyer adds to this point, stating that employers generally don't owe you anything other than your last paycheck (and, in some cases, you may be owed PTO).  

If you do receive a severance agreement, Hyman stresses the importance of having a lawyer review this legal document. 

“You need to know what you're agreeing to,” said Hyman. “There may be an opportunity for an attorney to look at the severance agreement and look at the circumstances surrounding your separation and maybe engage the company in negotiations. Maybe you're part of a protected class. Maybe there's an opportunity to get additional benefits or additional outplacement services or something that can help aid your transition. But you're not going to know unless you ask.”

 Hyman also explains that in a severance agreement, the company is asking you to sign a legal document that is going to bind you and you’ll also be waiving legal rights to sue the company. This is why it is important to understand what you’re agreeing to. For instance, there may be language regarding confidential information, trade secrets, non-compete clauses, or non-solicitation obligations baked into a separation agreement as part of a layoff package.

You may have had health benefits while at your company, and this is yet another aspect you’ll need to consider after receiving news of your layoff. Meyer advises that you have the right to a continuation of health coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA). COBRA can bridge the gap between your layoff and your next employee-sponsored health insurance policy. 

“Basically, the employer will have a third party administrator or COBRA administrator, contact the employee in the letter and explain their rights under COBRA.” 

After you collect your final paycheck and severance package and all the other many steps you take after you’ve been laid off, you may still sense something is wrong with the situation. Don’t ignore your intuition — find an expert that can help you.  

“If your separation of employment doesn't feel right or it feels like it might have been laid off for a discriminatory reason, talk to a lawyer,” said Meyer. “Again, let the wave of emotion pass first, but then talk to a lawyer and understand what your rights are.” 

But if you do feel as at peace with the situation as you can and have taken all the steps to move forward gracefully onto your next opportunity, Hyman offers some final advice:

“In addition to making sure your resume is updated, networking and job searching, you should find out from the company you were laid off from if they’re willing to be a reference,” said Hyman. “Find out if there’s an opportunity to get maybe a more substantive job reference from your current employer — other than the standard name, rank and serial number title — as this can aid in your job search.” 

Top Takeaways 

What Are My Rights After a Layoff?

• If there is a mass layoff, you are required to receive formal notification of the company’s decision at least 60 days before the layoff. 
• One of the first things you should consider doing after being laid off is applying for unemployment insurance 
• Employers generally don't owe you anything other than your last paycheck (and, in some cases, you may be owed PTO).  
• You have the right to get COBRA to bridge the gap between your layoff and your next employee-sponsored insurance policy. 
• If you do receive a severance agreement, consider having a lawyer review this legal document.
• “If your separation of employment doesn't feel right or it feels like it might have been laid off for a discriminatory reason, talk to a lawyer.”