Layoff Laws

In some cases, there aren't many layoff laws that will cover you. That's because employment is at-will in most states and an employer can let you go for almost any reason. However, if the layoff happened for no fault of your own and is a result of company downsizing, for example, there are some laws in place to help you until you get back on your feet.

Your employer doesn't owe you much under layoff laws. You're entitled to any back pay you have accrued up until the time you're laid off. You're also entitled to your vacation time/pay unless your contract states otherwise. Severance pay is iffy, and definitely not a must. You'll have to consult with your Human Resources department to find out more about that, or at the very least have another look over the contract you signed when you were hired.

In addition, you should be eligible for up to 18 months of COBRA, a temporary insurance plan for those between jobs that could cost a bit more than you're used to but may cost less than private healthinsurance. That insurance will cover you and your family if you were all previously on a group benefits plan under your employer. Be sure to read the fine print and get a full understanding of COBRA before signing the paperwork.

If you belong to a company that employs more than 100 workers and there is a mass layoff, you should get at least a 60-day warning under the WARN Act. That law was put into place so that those who are about to be laid off will have time to search and train for a new job. You should be paid during those sixty days unless you start working with a new company before the time is up.

If there are rumors of layoffs swirling around at or about your company, there is no time like the present to start to put out feelers for a new job and researching layoff laws. The sooner you file for unemployment benefits, the sooner you'll begin receiving them. There will still be a gap between your last day of employment and the time the benefits kick in.

You'll need to know where your Department of Labor office is so that you can go there and make a claim in person; you cannot do it online. You may also find out just how much unemployment compensation you will be able to collect between jobs depending on how long you were with your current (or if you've already been laid off, former) employer and what your current salary is.

If you feel that layoff laws were not followed when you were told you no longer have a job, you can contact your state's Department of Labor to make a claim. You will be asked to disclose details about what happened as thoroughly as possible on a claim form. The case could go to court.

If an employer violated your layoff rights by ignoring the WARN Act, they could be forced to pay each employee up to 60 days' worth of back pay and benefits. Other fines could be included.

Layoff laws are in place to protect you from the consequences of a layoff as much as possible, allowing you to keep some money coming in and maintaining your insurance coverage. If you work for a larger company, you are in a slightly better position, as you should be notified by law in advance. However, many of the other benefits are the same for workers within the same state. Differences may come from within your individual contract, such as the availability of a severance package. If you've heard layoff rumors, it's never too early to start looking over your contract again and locating your local Department of Labor office.

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