Layoffs & Transitions

The first 48 hours after a layoff: what to do before anything else

A layoff lands like a fire alarm. Most people's first instinct is to do something. The things that need to happen immediately are different from the things that feel urgent.

Here's what has actual deadlines attached.

File for unemployment right away. Benefits in most states aren't retroactive to your last day of employment. They start from when you file. The process also takes time, and the weekly certification requirements start from the moment your claim is approved. Every week you wait is money you're not getting back.

Don't sign your severance agreement yet. You typically have 21 days to review it, and 7 days to revoke after signing. Use that time. Read the agreement yourself before anyone walks you through it. Look for non-compete clauses, non-disparagement language, and what claims you're releasing.

Get clear on your health coverage timeline. Your employer-sponsored coverage usually ends on the last day of the month in which you were laid off, not your last day of work. COBRA gives you 60 days to elect continuation coverage, but it's retroactive, so you can wait to see if you need it. Marketplace plans are another option worth comparing.

Make a copy of whatever you legally can before you lose access. Performance reviews, any offers or compensation letters, contacts you'll want to stay in touch with. Once your accounts are deactivated, that access is gone.

What most people don't know

You don't have to accept the severance as written. For employees over 40, the Older Workers Benefit Protection Act requires a minimum of 21 days to review and gives you 7 days to revoke after signing. For employees under 40, the review window may be shorter but there's still room to negotiate the terms. Many companies expect some back-and-forth, especially on non-compete scope and whether equity accelerates.

Your company-sponsored 401(k) doesn't disappear, but you have decisions to make. You can leave it where it is, roll it to a new employer's plan, or roll it into an IRA. Don't cash it out. The taxes and early withdrawal penalties will hurt more than you expect.

In the first 48 hours, focus only on the time-sensitive things: unemployment filing, health coverage review, and signing nothing. Everything else, including updating your resume and reaching out to your network, can wait a few days while you get your bearings.

Quick reference

Unemployment filing

careeronestop.org/localhelp for your state's filing link

COBRA election window

60 days from notice, retroactive coverage if you choose it

Severance review window

21 days if over 40 (OWBPA), negotiate the terms before signing

401(k)

Leave it, roll to new plan, or roll to an IRA. Never cash out.

WARN Act

If 50+ employees were laid off at once, check dol.gov for whether 60-day notice pay applies