What to do in the first 48 hours after a layoff
In the first 48 hours after a layoff, do four things: collect and save your paperwork, hold off on signing anything, start your unemployment claim, and find out when your health coverage ends. None of these needs a perfect answer today. Each one protects a deadline or an option that is harder to recover later. Rules differ by state and by employer, so confirm the details with the official sources linked below.
What should I do first after being laid off?
Get the facts in writing before you leave or lose access to your accounts. Ask for, or save copies of:
- Your separation or termination letter, including your last day and any stated reason.
- Any severance offer, with the full agreement, not just a summary.
- Pay and benefits details, including final pay, accrued time off and when benefits end.
- Your own records, such as pay stubs, your offer letter, performance reviews and the names of people who can confirm your work.
Use personal copies of documents that are yours. Do not take confidential company files or customer data.
Should I sign a severance agreement right away?
No. A severance agreement is a contract, and it usually asks you to give something up, often the right to bring claims against the employer. Ask how long you have to decide, ask for the document in writing, and read every section before you sign. If the amount, timing or terms are unclear, ask the employer to explain them in writing.
Because the terms vary widely, consider asking an employment lawyer or your state labor department about your specific agreement. This guide does not give legal advice, and what you can negotiate depends on your employer and your state.
How soon should I file for unemployment?
File as soon as you know your last day, if your state allows it. According to the U.S. Department of Labor, each state runs its own program, and it generally takes two to three weeks after you file to receive a first benefit check. Filing late does not help.
You file with the state where you worked. CareerOneStop, a Labor Department sponsored site, has an after-a-layoff walkthrough. Our fuller guide is unemployment insurance after a layoff.
What happens to my health insurance?
Find out the exact date your employer coverage ends, then compare your options. The Department of Labor's job loss guidance lists these key points:
- COBRA election window: you generally have 60 days from the date the notice is provided or from the date coverage ended, whichever is later, to elect it.
- COBRA length and cost: coverage can last up to 18 months, or longer in some cases. You may have to pay the full group premium plus a 2 percent administrative fee.
- COBRA eligibility: your employer generally needed 20 or more employees, and you must not have been fired for gross misconduct.
- Another employer plan: if you can join a plan such as a spouse's, you must request it within 30 days of losing your original coverage.
- Marketplace: you can compare plans on HealthCare.gov, and you may qualify for a special enrollment period and a premium tax credit.
The 60-day COBRA window does not mean you can wait 60 days to think about it. If you have a medical need soon, decide sooner. For a side-by-side comparison, read health insurance after a layoff: COBRA vs Marketplace.
What about my 401(k) and other benefits?
You do not need to move your retirement money in the first two days. The Department of Labor suggests asking your plan administrator for the plan's Summary Plan Description and an individual benefit statement. The description explains your benefits, when you can collect them and whether your account can be rolled over to a new employer's plan or an IRA. The statement shows your balance. Keep both with your important papers and update your address with the administrator.
Was my layoff supposed to come with advance notice?
Some larger employers must give advance notice before mass layoffs or plant closings under the federal WARN Act, and some states have their own rules. If you were told your job ended immediately, check whether notice was required. Start with how to read a WARN notice and see recent filings on our WARN page.
How do I know if more layoffs are coming at my old company?
Public companies often disclose workforce reductions in SEC filings. Our guide to SEC 8-K Item 2.05 explains what those filings say, and you can check a company or browse the live layoff feed.
What to watch
Deadlines are the main risk in the first weeks: the date your coverage ends, how long you have to respond to a severance offer, and your state's unemployment filing rules. Write each date down, and get any figure that matters from your state agency, plan administrator or employer in writing.