If you only do five things
- File for unemployment this week. Most states backdate benefits only to the week you file, not the week you were laid off. How to file.
- Do not sign the severance agreement today. If you are 40 or older, federal law gives you at least 21 days, or 45 days in a group layoff. What to check first.
- Save every document you were given. Separation letter, benefits paperwork, the severance offer, and the date you were told. Why it matters later.
- Write down your health coverage dates. You have 60 days to elect COBRA and 60 days for the ACA Marketplace. Compare the options.
- Ask about Rapid Response. If your employer filed a WARN notice, your state runs a free program for you. What it covers.
What has a deadline in the first two weeks
Four things: your documents, your unemployment claim, your health coverage decision, and the severance review. Everything else can wait.
Day 1
save your documents, sign nothing
Days 1 to 3
file for unemployment insurance
7 days
review your health insurance options
14 days
finish reviewing the severance agreement
- Save copies of everything you receive, including your separation letter, benefits information, and any severance agreement.
- Do not sign anything on the spot. If you are 40 or older, federal law gives you at least 21 days, or 45 days in a group layoff, to review a severance offer.
- File for unemployment without waiting for severance details to be finalized. In most states, filing sooner protects your benefits start date.
- Find out when employer coverage ends and when your COBRA election window closes.
- Get advice if the terms are significant. If you have questions about a non-compete or a release of claims, consider a consultation with an employment attorney. Many offer free initial reviews for layoff situations.
Can I claim unemployment if I am getting severance?
In many states, yes. File the week your employment ends rather than waiting for severance to run out.
Most states backdate benefits only to the week you file, not the week you were laid off. There is no penalty for filing a claim that gets denied, so file even if you are unsure whether you qualify. Filing late has a real cost.
- File with the state where you worked, not where you live, if they differ. Each state has its own online portal. Find yours through the CareerOneStop benefits finder.
- Severance does not disqualify you in many states, though it may delay the start of payments depending on how it is structured.
- WARN pay is handled state by state. If you received 60 days of pay in lieu of advance notice, check your state's rules. In many states you can still file your claim during the WARN pay period so benefits begin promptly when it ends.
How do I stay covered for health insurance?
COBRA keeps your existing employer plan, but it is usually the most expensive option and you have 60 days to decide.
60 days
to elect COBRA from your qualifying event
18 months
longest COBRA coverage runs after employment ends
60 days
special enrollment on the ACA Marketplace
If you miss the 60-day COBRA window, you lose the option. Before electing it, compare the cost to these:
- ACA Marketplace. Losing employer coverage is a qualifying life event that opens a 60-day special enrollment period on HealthCare.gov or your state exchange. Depending on your income, subsidies may make a marketplace plan significantly cheaper than COBRA.
- Medicaid. If your household income drops below your state's Medicaid threshold after the layoff, you may be eligible for coverage at little or no cost. Apply through your state's Medicaid agency or through HealthCare.gov.
- Spouse or partner plan. If your spouse or domestic partner has employer coverage, their plan may allow you to enroll during a special enrollment period triggered by your job loss.
You can elect COBRA now and switch to a marketplace plan or Medicaid later, so COBRA works as bridge coverage while you compare. Both 60-day windows are running at the same time, so act inside them.
Who is eligible for COBRA, what counts as the qualifying event, and what it costs
If your employer offered health insurance and had 20 or more employees, you are likely eligible for COBRA continuation coverage. It keeps your existing employer health plan for up to 18 months after your employment ends.
The qualifying event is usually your last day of employment or the day your coverage ends, whichever is later. The 60 days runs from that date.
COBRA is usually expensive because you pay the full premium, meaning the employer's share plus your own, plus up to a 2% administrative fee.
What should I check before signing a severance agreement?
The release. It is usually what the company is paying for, and it can end any WARN Act claim you have.
21 days
to consider an offer, age 40+
45 days
to consider a group termination offer, age 40+
7 days
to revoke after signing, age 40+
- Read the release carefully. Most severance agreements include a general release of claims covering age discrimination, wrongful termination, and WARN Act violations. If you sign, you typically cannot pursue those claims later.
- Understand the payment structure. Severance paid as a lump sum may affect your unemployment eligibility differently than continuation pay. Check your state's rules.
- Look at non-compete and non-solicitation clauses. Some agreements include or reinforce restrictions on working for competitors or contacting former clients. Check the scope and duration before agreeing.
- Consider consulting a lawyer. For significant offers, especially those with non-compete terms or releases of age discrimination claims, a consultation with an employment attorney is worth the cost. Many offer flat-fee severance reviews.
Our severance guide goes through an agreement section by section.
Why severance is offered at all, and what the review windows are if you are under 40
No federal or state law requires employers to offer severance. When they do, it is usually in exchange for a release of legal claims, including any claims you might have under the WARN Act.
Workers aged 40 and older must receive at least 21 days to consider the offer, 45 days in a group termination, plus 7 days after signing to revoke. Younger workers may not have the same statutory protections, but most employers extend a reasonable review period to everyone.
Your state runs a free program for WARN layoffs
Rapid Response is a federally funded program for workers affected by WARN filings and mass layoffs. The services are free.
- Job search assistance, including resume workshops, interview preparation, and connections to local employers who are hiring.
- Training referrals, including retraining programs, trade adjustment assistance if the layoff is related to foreign competition, and tuition assistance for new skills.
- Unemployment guidance, including help navigating the filing process and understanding your eligibility.
- Benefits counseling, including COBRA information, retirement account guidance, and referrals to community resources.
If you have not been contacted, reach out to your state's dislocated worker unit or your local American Job Center.
How Rapid Response gets triggered by a WARN filing
Rapid Response is administered by state and local workforce development boards. When a WARN notice is filed, the state's dislocated worker unit is notified, and Rapid Response teams are dispatched to the affected worksite or meet virtually with affected employees.
If your employer filed a WARN notice, your local workforce board should already be organizing outreach.
Where do I get free career help in person?
At an American Job Center. Find the nearest one through CareerOneStop's Service Locator.
- Career counseling with a trained advisor who can help you assess skills, explore career changes, and create a job search plan.
- Resume and application help, including one-on-one assistance with writing, formatting, and tailoring applications to specific positions.
- Retraining vouchers through programs like the Workforce Innovation and Opportunity Act (WIOA), which can cover the cost of training in high-demand fields.
- Job fairs and employer connections, including events where local employers actively recruit displaced workers.
Many state pages on this site also include a job center finder with locations in the affected area.
What an American Job Center is and who can use one
American Job Centers, formerly called One-Stop Career Centers, are physical locations funded through the federal workforce development system. They provide free services to anyone looking for work, with dedicated programs for dislocated workers.
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Work through this checklist
Use this as a working list of items to review and act on after a layoff. Not all will apply to your situation.
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File for unemployment insurance (file the week you become unemployed)
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Review and elect or decline COBRA (60-day window)
☐
Check ACA Marketplace for subsidized plans (60-day special enrollment)
☐
Review severance agreement before signing (21 to 45 days if age 40+)
☐
Roll over or preserve your 401(k) (no hard deadline, but do not cash out)
☐
Check whether company life insurance can be converted to individual coverage
☐
Use remaining FSA funds before your last day (most plans forfeit unspent balances)
☐
Request your final paycheck and confirm payout of accrued vacation (check state law)
☐
Contact your local American Job Center for free career services
☐
Ask about Rapid Response services through your state workforce board
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Update your resume and LinkedIn before starting outreach
What if my employer skipped the notice?
If your employer was required to give 60 days of advance notice and failed to do so, you may be entitled to back pay and benefits for up to 60 days. Some states impose additional penalties.
The WARN Act is enforced through private lawsuits, not through the Department of Labor. The DOL does not investigate individual WARN complaints.
- Document everything. Save your separation letter, any communications about the layoff by email, Slack or written notice, the date you were informed, and your last day of work. Note whether you received any pay in lieu of notice.
- Consult an employment attorney. Many handle WARN cases on a contingency basis, with no upfront cost. Individual and class action lawsuits can both be filed in federal court, and a class action may be more practical if many employees were affected.
- Act promptly. The WARN Act does not specify a statute of limitations, and most courts apply a three-year window. The sooner you act, the stronger your position and the easier it is to gather evidence.
For more background on the WARN Act itself, see our FAQ page or our guide on why some layoffs don't appear in WARN filings.