After a layoff
What to do after being laid off
Day one after a layoff hands you a long list at once. Here's what to do this week, what to do this month, and what can wait: severance, unemployment, health coverage, references, then the search itself.
Updated
Your layoff checklist
In order. The first column has deadlines attached; the third can wait until the first two are done.
Day 1The first day or two
Week 1This week
Weeks 2-4Weeks 2 to 4
Ticks are saved in this browser only, so you can come back to the list.
Severance negotiation: what to ask before you sign
No federal law requires severance pay; it's a matter of agreement between you and the employer, per the Department of Labor. That also means the terms can be asked about. Read the agreement, and ask in writing.
- The amount, and how it was worked outSeverance is usually based on how long you worked there. Ask for the formula in writing.
- Health coverageWhether they'll pay part of your COBRA premium, and for how long.
- Unused time off and bonusWhen accrued vacation and any earned bonus will be paid.
- Your end date and benefits end dateThey can differ. Ask the exact date your health coverage ends.
- What they'll tell employersAsk what reason they'll give when someone calls for a reference.
- Time to decideA few days to read it is a fair ask at any age. At 40 or older, federal law sets a minimum.
How to negotiate severance: ask for one or two specific changes, give a reason for each (your years there, a project you're handing over), and ask in writing: “Before I sign, I'd like to ask about two things: [first ask] and [second ask]. Could we discuss them this week?” An agreement often asks you to give up legal claims in exchange for the pay, so if anything about the layoff seems wrong, talk to an employment lawyer before you sign.
File for unemployment
There's no federal unemployment program: each state runs its own and sets its own rules. You usually qualify if you're out of work through no fault of your own, and a layoff for lack of work usually counts. File with the state where you worked.
Health insurance after a layoff
COBRA lets you keep your employer's group plan. It generally applies at private employers with 20 or more employees and at state and local governments. You can also choose a Marketplace plan instead; losing job coverage lets you enroll outside the usual season. Compare the two before the windows close.
How to talk about the layoff
Every recruiter will ask why you're looking. Keep it to two sentences: what the company did, and what you want next. Practice it until it sounds like a fact, because it is one.
Say“My role was eliminated when the company cut [the team or a share of staff]. I'm looking for [the kind of job] where I can keep doing [what you're good at].”
Don't sayA long story about the decision, who was kept, or what you think of the people who made it.
Questions after a layoff
How soon should I file for unemployment after being laid off?
As soon as you can after your last day. Each state sets its own rules and waiting periods, so check yours through the finder above.
Should I sign the severance agreement right away?
No. Read it first, ask about anything unclear, and ask for time if you need it. If you're 40 or older and it waives age claims, federal law gives you at least 21 days (45 in a group layoff) and 7 days to change your mind after signing.
Can I negotiate severance?
You can ask. Severance is a matter of agreement, so terms like the amount, help with COBRA and the reference they'll give can be raised. Ask in writing, with a reason for each ask.
Is COBRA or a Marketplace plan better?
It depends on the cost and your doctors. COBRA keeps your plan and your doctors, but you can be charged up to 102% of the plan's full cost. Compare its monthly cost, deductible and doctors with Marketplace plans, within the 60-day windows.
When should I start applying for jobs?
After the first-week items with deadlines are done. Then update your resume, start a tracker, and practice the layoff answer before the first recruiter call.
Practice how you'll explain the layoff
The first call is a recruiter screen, and it starts with why you're looking. An AI recruiter asks it out loud, follows up, and scores how your answer came across.
Your free mocks show the score. The Interview-Ready plan shows you how to raise it.
- As many scored mocks as you want, in every round
- Why you lost points on each skill
- Your weakest answers rewritten, with why the new version scores higher
$29 a month if you join by October 31, and you keep it while you stay (regular $49). 14-day refund from your account. See the plan