The most protective thing most people can do in the first week after a layoff is simply to slow down by 48–72 hours and run a checklist. A layoff is sudden, public, and exhausting, and the decisions made in the first 7 days have outsized effects on what happens next: severance, the unemployment claim, health insurance, equity, and any potential legal claims — many people get blindsided and sign whatever is in front of them. This is not a guide to processing the emotional weight (that is real and matters); it is the operational checklist many people use: what to file, what to read closely before signing, what to download, and what to ask for. What applies to you depends on your situation, and these rules and figures can change.
What does federal law say?
A few federal protections apply automatically after a layoff, without anyone needing to ask for them. Per the U.S. Department of Labor, the WARN Act generally requires employers with 100 or more employees to give 60 days' notice of a mass layoff, and where that notice was not given, the DOL describes affected workers as generally owed pay in lieu of notice. COBRA generally requires employer-sponsored health coverage to be offered for continuation, typically for up to 18 months, with the continuing participant paying the full premium plus an administrative fee. For workers 40 or older, the EEOC explains that a severance agreement releasing age-discrimination claims generally has to allow time to consider it, time to revoke it, and written advice to consult counsel. Separately, the EEOC treats the right to file an agency charge as something that generally cannot be waived. How each plays out depends on your situation. The federal protections that apply:
- WARN Act: Per the U.S. Department of Labor, the Worker Adjustment and Retraining Notification Act generally requires employers with 100+ employees to give 60 days' notice of mass layoffs (50+ employees at a single site, or 33% of the workforce). Where notice is not given, the DOL describes affected workers as generally owed pay in lieu of notice.
- COBRA: Under COBRA, the DOL says employer-sponsored health insurance must generally be offered for continuation, typically up to 18 months. The continuing participant generally pays the full premium plus a 2% administrative fee.
- OWBPA (age 40+): For workers 40 or older, the EEOC explains that a severance agreement releasing age-discrimination claims generally must give 21 days to consider (45 in a group layoff), 7 days to revoke, and written notice advising the worker to consult counsel.
- WARN-related state add-ons: Some states (NJ, NY, IL, CA) have stronger notice thresholds and state-level severance requirements that generally stack on top of the federal baseline. Your state may differ.
- Whistleblower / agency-charge carve-outs: The EEOC treats the right to file a charge with the EEOC, NLRB, SEC, OSHA, etc., as something that generally cannot be waived, regardless of what a severance agreement says.
How does this vary by state?
State law varies a great deal here, and the differences that matter most in the first week are notice length, final-paycheck timing, and whether restrictive covenants are enforceable. California's mini-WARN Act generally applies to employers with 75 or more employees at any one site, requires 60 days' notice, generally requires the final paycheck to include all earned wages on the day of termination with unused vacation paid out, and treats non-competes in severance as largely unenforceable. New York's WARN Act generally requires 90 days' notice for mass layoffs, longer than the federal period. New Jersey generally requires severance pay of about a week per year of service for qualifying mass layoffs. Texas generally follows federal WARN, with the final paycheck typically due within six calendar days for involuntary terminations and non-competes enforceable within a reasonable scope. These rules continue to change, and your state may differ. How the picture commonly looks:
California: The state's mini-WARN Act generally applies to employers with 75+ employees at any one site, with 60-day notice required. California law generally requires the final paycheck to include all earned wages on the day of termination, and unused vacation to be paid out. Non-competes in severance are largely unenforceable under California law.
New York: New York's WARN Act generally requires 90 days' notice for mass layoffs (stronger than federal).
New Jersey: For qualifying mass layoffs, New Jersey law generally requires severance pay of about 1 week per year of service.
Texas: Texas generally follows federal WARN. Under Texas law the final paycheck is typically due within 6 calendar days for involuntary terminations. Non-competes can be enforceable within reasonable scope.
What should you do in the first 7 days, step by step?
The first week generally runs in a predictable order, and almost none of it involves signing anything. It usually starts with getting the termination details in writing — the date, the reason given, the last day of pay and benefits, any severance offer, the PTO payout, and 401(k) vesting status — followed by downloading your own records before access is revoked. Filing for unemployment comes next, and most state offices ask for it within the first week or two, so people generally file early even when severance is on the table. With those in place, the middle of the week is usually spent on arithmetic: cash on hand, severance, PTO payout, an unemployment estimate, and the cost of COBRA against marketplace alternatives. The end of the week is where the severance agreement gets read, negotiated, and often reviewed by someone else. The steps people commonly follow:
1. Many people get the termination details in writing (today)
A common first step is to ask for a written confirmation that includes: termination date, reason given, last day of pay, last day of benefits, severance offer (if any), unused vacation/PTO payout, and 401(k) vesting status. Many people decline to sign anything beyond the termination acknowledgement on day one.
2. Download what is yours (within 24 hours)
Before access is revoked, many people download personal data: pay stubs, performance reviews, signed agreements (offer letter, equity grant, severance plan if any), benefits enrollment forms, a contact list (within company policy), and portfolio work they authored that they may need for future job applications. A common boundary people keep is to not take confidential employer data.
3. File for unemployment (within 7 days)
Most state UI offices ask you to file within the first 1–2 weeks; late filings can reduce or delay benefits, so many people file early. Many people file even when they receive severance — in most states severance generally does not disqualify a claim, only delays the start date. Your state's rules may differ.
4. Calculate your runway (week 1)
A common step is to pull together: cash on hand, severance amount, unused PTO payout, UI benefit estimate, COBRA monthly cost vs. marketplace alternatives, and any pending bonuses or commissions owed. Many people overpay for COBRA for months when an ACA marketplace plan would have been cheaper — so a lot of people compare the two before enrolling.
5. Many people don't sign the severance on day one
You are generally not required to sign on the spot. For workers 40 or older, the OWBPA, per the EEOC, generally provides at least 21 days to consider when the agreement releases age-discrimination claims. Even under 40, many people ask for at least 7 days to review. A script people sometimes use: "I want to take this home and review carefully. I will follow up by [date]."
6. Review and negotiate the severance
It often helps to read carefully for: non-compete and non-solicit scope; release of claims (broad? carve-outs?); reference language; equity treatment; cooperation obligations; and tax timing. In many cases severance terms turn out to be negotiable. Common asks people make: more pay or longer duration, employer-paid COBRA for 3–6 months, accelerated equity vesting near a vesting cliff, mutual non-disparagement, a narrowed non-compete, and a prorated bonus.
7. Many people talk to an employment lawyer before signing
For severance above a few thousand dollars, many people find a 1–2 hour consultation pays for itself. An attorney can spot problematic clauses, evaluate potential discrimination/retaliation claims that the release would waive, and often negotiate on the worker's behalf.
What red flags should you watch for?
The clearest red flag in the first week is pressure to sign within hours, since that timing usually reflects negotiation rather than any legal deadline. Bundling is the next one: an agreement that folds severance together with amounts you may already be owed — the final paycheck, accrued PTO, a vested bonus — is offering less new money than the headline suggests. Missing or ambiguous carve-outs for whistleblower rights and agency charges are worth noticing, as is a non-compete written more broadly than the job you actually did, and a reference policy that stays vague about who will say what. For workers 40 or older, an agreement that skips the consideration and revocation periods the OWBPA generally provides is a signal in itself. So is a layoff that fell disproportionately on one group at your level. What people commonly flag:
- You are pressured to sign "today" or "in the next few hours"
- Severance amount looks calculated to buy silence about something specific
- Non-compete is written broader than your actual job scope
- The agreement bundles severance with amounts you may already be owed (final paycheck, accrued PTO, vested bonus)
- Whistleblower or agency-charge carve-outs are missing or worded ambiguously
- You are 40+ and the agreement does not give the 21+ days to consider and 7 to revoke that the OWBPA generally provides
- Reference policy is vague or open-ended
- Confidentiality clauses would prevent you from discussing discrimination/harassment (generally unenforceable in CA, NY, and others)
- The layoff disproportionately affected protected groups (older, pregnant, disabled, recent FMLA users) at your level
When should you talk to a lawyer?
Many people get a professional read in the first week when the severance is significant, when they are 40 or older and the agreement releases age-discrimination claims, or when the layoff looks like it fell disproportionately on a protected group at their level. Recent protected activity is another common trigger — a complaint, a leave, or an accommodation request shortly before the layoff puts the sequence in question. So do terms that reach into money or future work: equity, deferred compensation, or commissions that the agreement materially affects, and non-compete or non-solicit provisions that are unusually broad. Notice that appears shorter than a WARN statute requires is a reason on its own. Timing matters here, because unemployment claims, agency charges, and WARN claims generally carry deadlines, and for many people acting in the first week preserves options that close fast. The situations people most often bring to counsel:
- They are 40+ and the severance involves an ADEA release (OWBPA mistakes can invalidate the release)
- They suspect the layoff disproportionately targeted a protected class
- They recently engaged in protected activity (complaint, leave, accommodation request) before the layoff
- The severance is significant in amount
- Their equity, deferred comp, or commissions are materially affected
- Non-compete or non-solicit provisions are unusually broad
- They received WARN-eligible notice that was less than required
Timing matters. Unemployment claims, EEOC charges, and WARN claims generally have deadlines (often 30–180 days, depending on the claim and jurisdiction). For many people, acting in the first week preserves options that close fast.
Official sources
- U.S. Department of Labor — WARN Act Compliance Assistance
- U.S. Department of Labor — Continuation of Health Coverage (COBRA)
- U.S. Equal Employment Opportunity Commission — Understanding Waivers of Discrimination Claims in Employee Severance Agreements