What to Do After a Layoff: A U.S. Checklist (2026)

Job Search • By Hassan Raza • Published October 21, 2026 • Updated October 21, 2026

Getting laid off is a shock for almost everyone, even when you saw it coming, and working out what to do after a layoff is hard while your head is still spinning. In the first few days, it's hard to know what matters most. The paperwork can feel urgent, and so can the job search, and on top of that you're dealing with the emotional side of it.

This checklist puts things in order. You'll find what to do in the first 48 hours, how unemployment insurance works, your health insurance options, what to look for in a severance agreement, what happens to your 401(k), and how to restart your job search without burning out. Rules vary by state and employer, so use this as a starting point (current as of October 21, 2026) and confirm the details for your own situation.

Note: This is general information, not legal or financial advice. For questions about a severance agreement or a possible legal claim, consider talking with an employment attorney.

First 48 Hours: What to Do Right Away

Before you touch your resume or message anyone on LinkedIn, take care of these first:

1. Get everything in writing. Ask HR for your termination date, final paycheck date, details of any severance offer, and when your health coverage ends.
2. Ask about your final pay and unused PTO. Rules on final paychecks and accrued vacation payout vary by state.
3. Save personal records you're allowed to keep. That means pay stubs, performance reviews, benefits documents and contact information for colleagues. Don't take confidential company files.
4. Don't sign anything on the spot. If you're offered a severance agreement, ask how long you have to review it.
5. File for unemployment as soon as you're eligible. More on that below.
6. Write down key deadlines in one place: the severance review period, the COBRA election window, the Marketplace enrollment window and your first unemployment certification.

Was There Advance Notice? The WARN Act

The federal Worker Adjustment and Retraining Notification (WARN) Act generally requires employers with 100 or more employees to give at least 60 calendar days' written notice before a plant closing or a mass layoff. According to the Department of Labor, a covered mass layoff generally affects 50 to 499 employees at a single site, if they make up at least 33% of the workforce there, or 500 or more employees regardless of percentage.

There are exceptions, including faltering companies, unforeseeable business circumstances and natural disasters. DOL also notes that it doesn't enforce WARN by seeking damages for workers. Workers who believe they didn't receive the required notice would generally need to pursue it themselves. Some states have their own notice laws with different thresholds.

You don't need to become a WARN expert. But if you were part of a large layoff with no notice, it's worth a conversation with an employment attorney.

Step 1: File for Unemployment Insurance

Unemployment insurance is a joint state-federal program, and each state runs its own. According to the Department of Labor, you usually qualify if you:

• Are unemployed through no fault of your own (in most states, that means you lost your job because of a lack of available work)
• Meet your state's work and wage requirements during a "base period," which in most states is the first four of the last five completed calendar quarters
• Meet any additional state requirements, such as actively looking for work

How to file: - File with the unemployment program in the state where you worked. If you worked in a different state from where you live, or in multiple states, your current state's agency can explain how to file. - File as soon as possible after your job ends. Depending on the state, you can file online, by phone or in person. - DOL says it generally takes two to three weeks after you file to receive your first benefit payment.

CareerOneStop's Unemployment Benefits Finder links to each state's filing site and phone numbers. Before you start, have your employer's name and address, your dates of employment and your earnings information ready.

Tip: Most states require you to certify regularly (often weekly) and report your job search activity. Keep a simple log of your applications and contacts. The tracker in our job search plan works well for this.

Does severance affect unemployment? It depends on the state. Some states reduce or delay benefits while you receive severance, and others don't. Ask your state agency.

Step 2: Sort Out Health Insurance

Losing job-based coverage is one of the most stressful parts of being laid off. You generally have two main options.

Option A: COBRA

COBRA lets you continue your former employer's group health plan for a limited time. Key points from the Department of Labor:

• Who's covered: For private-sector employers, COBRA generally applies to group health plans at employers with 20 or more employees. State and local government plans are covered under the Public Health Service Act. Some states have their own continuation laws for smaller employers.
• Election window: You have at least 60 days to decide, starting from the later of the date you receive the election notice or the date you'd otherwise lose coverage.
• Notice timing: Your employer generally has 30 days to notify the plan administrator, which then has 14 days to send you the election notice.
• Duration: Job loss generally provides up to 18 months of coverage. Certain events can extend it.
• Cost: You may have to pay the full premium, including the share your employer used to pay, plus up to a 2% administrative fee.

COBRA can be expensive, but it lets you keep your current doctors, your deductible progress and your network.

Option B: A Health Insurance Marketplace Plan

According to HealthCare.gov, losing job-based coverage qualifies you for a Special Enrollment Period. You generally have 60 days after your coverage ends to pick a Marketplace plan (you can also apply up to 60 days before it ends). Depending on your household income, you may qualify for savings that lower your monthly premium, which can make a Marketplace plan cheaper than COBRA.

Compare before you decide: Look at monthly premiums, deductibles, the out-of-pocket maximum, and whether your doctors and prescriptions are covered. Our guide to evaluating a job offer walks through those same health plan comparisons.

If a spouse or partner has job-based coverage, losing your coverage may also let you join their plan outside open enrollment. HealthCare.gov notes that job-based plans must offer a special enrollment period of at least 30 days.

Step 3: Review the Severance Agreement Carefully

Severance isn't required by federal law in most situations, but many employers offer it, usually in exchange for you signing a release of legal claims. Before you sign:

• Check the deadline to sign and whether there's a period to change your mind after signing.
• Understand what you're giving up. Most agreements include a release of claims against the employer.
• Look for other terms, such as confidentiality, non-disparagement, non-compete or non-solicit clauses, and whether you must return company property first.
• Confirm the money: the amount, how it's paid (lump sum or salary continuation), and whether benefits such as COBRA premium subsidies are included.
• Consider negotiating. Asking politely for more weeks of pay, a COBRA subsidy, a later end date, outplacement services or a neutral reference is reasonable. The worst common answer is no.

If the agreement is complex or you think you may have a legal claim, an employment attorney can review it. Ask about consultation fees up front, since they vary.

Step 4: Decide What to Do With Your 401(k)

Your own contributions to a 401(k) are always yours. Employer contributions depend on your vesting schedule, and unvested amounts may be forfeited when you leave. Check your plan statement to see what you keep, and see our guide to the 401(k) match.

Your options usually include leaving the money in your old plan (if allowed), rolling it into a new employer's plan or an IRA, or cashing it out. According to the IRS:

• A direct rollover (sent straight from your old plan to an IRA or new plan) avoids withholding.
• If the money is paid to you, the plan generally must withhold 20%, and you have 60 days to roll it over.
• If you're under 59½ and you don't roll it over, the taxable amount is generally subject to income tax and a 10% additional tax, unless an exception applies.

Cashing out can be tempting when money is tight, but it's often costly. See a tax professional if you're unsure.

Step 5: Build a Simple Budget

Add up your expected income (severance, unemployment benefits, savings and any partner income) and your essential expenses. Knowing how much runway you have cuts down the panic, and it helps you decide which job offers you can afford to wait on.

Step 6: Restart Your Job Search

Give yourself a few days to absorb the news. Then start back up in a structured way:

1. Update your resume with your most recent accomplishments while they're fresh. See our resume guide.
2. Update your LinkedIn profile. Our LinkedIn guide covers the Open to Work setting and privacy options.
3. Tell your network. A short, positive note works: "My role at X was eliminated in a company-wide layoff. I'm looking for my next role in [area]. If you hear of anything, I'd appreciate a heads-up." See our networking guide.
4. Use your former colleagues. People laid off together often share leads.
5. Visit an American Job Center. These DOL-funded centers offer job search help, workshops and training information at no cost. Find one through CareerOneStop's American Job Center Finder.
6. Consider whether it's time for a change. If you're thinking about a new field, see our career transition guide.

How to Talk About a Layoff in Interviews

Layoffs are common, and interviewers know that. Keep your explanation short, factual and pointed toward the future:

Illustrative example (use your own facts):

"My position was eliminated as part of a company-wide restructuring that affected about 15% of staff. I'm proud of what I accomplished there, especially [result], and I'm excited about this role because [reason]."

Don't criticize your former employer, and don't over-explain it. For more, see our common interview questions guide.

Frequently Asked Questions

Can I get unemployment if I received severance? Possibly. It depends on your state. Some states reduce or delay benefits during severance. Ask your state unemployment agency.

How soon should I file for unemployment? DOL advises contacting your state program as soon as possible after you become unemployed.

Is COBRA or a Marketplace plan cheaper? It depends on your income, family size and health needs. Marketplace plans may come with savings based on income. Compare total costs, not just premiums.

Should I sign my severance agreement right away? Usually not. Read it carefully, note the deadline, and consider having an employment attorney review it, especially if it's complex.

How do I explain a layoff on my resume? Generally you don't need to. List your dates. Explain briefly in a cover letter or interview if it comes up.

Related Guides

• When you feel ready to search again, how to find a job in the U.S. includes notes on searching after a layoff.
• Explaining the layoff later? See how to explain an employment gap.
• Back on offers: evaluating a job offer.

Sources

1. U.S. Department of Labor, "How Do I File for Unemployment Insurance?": https://www.dol.gov/general/topic/unemployment-insurance
2. CareerOneStop (U.S. Department of Labor), "Unemployment Benefits Finder": https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/find-unemployment-benefits.aspx
3. U.S. Department of Labor, "Plant Closings and Layoffs" (WARN Act): https://www.dol.gov/general/topic/termination/plantclosings
4. U.S. Department of Labor, Employment Law Guide, "Notices for Plant Closings and Mass Layoffs": https://webapps.dol.gov/elaws/elg/layoffs.htm
5. U.S. Department of Labor, EBSA, "A Worker's Guide to Health Benefits Under COBRA": https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/workers-guide-health-benefits-cobra
6. HealthCare.gov, "See Your Options If You Lose Job-Based Health Insurance": https://www.healthcare.gov/have-job-based-coverage/if-you-lose-job-based-coverage/
7. HealthCare.gov, "Special Enrollment Period" (glossary): https://www.healthcare.gov/glossary/special-enrollment-period/
8. Internal Revenue Service, "Rollovers of retirement plan and IRA distributions": https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions
9. Internal Revenue Service, "Retirement topics – Vesting": https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-vesting
10. CareerOneStop, "American Job Center Finder": https://www.careeronestop.org/LocalHelp/AmericanJobCenters/find-american-job-centers.aspx