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After a layoff, save your paperwork and confirm the dates your job and benefits end. Then review any severance offer, file promptly with the appropriate state unemployment agency, and compare health coverage options before your current insurance stops. The steps and deadlines depend on your state, employer plan, and household situation.
First, secure your documents and key dates
Keep copies of the documents that explain what is changing and when. Your last day worked, employment end date, final pay date, and health coverage end date may not be the same.
- Save your layoff or termination notice, any WARN notice, severance offer, benefits summary, final-pay details, and unemployment instructions.
- Ask HR for the health plan administrator’s contact information, the COBRA election notice and premium, copies of relevant benefit-plan documents, and how accrued paid leave will be treated.
- Record the dates and instructions in writing. Do not rely on a verbal promise if it differs from the written severance agreement or plan.
Review the severance offer before deciding
Federal law does not generally require an employer to pay severance under the Fair Labor Standards Act. The U.S. Department of Labor puts it this way: “Severance pay is a matter of agreement between an employer and an employee (or the employee’s representative).” The amount and terms may depend on an employment agreement, employer policy or plan, union agreement, or state law. Read the Department of Labor’s severance guidance.
Read the written offer carefully and ask the employer to clarify:
- What the payment covers and when it will be paid.
- Whether the offer includes continued health coverage or pays any COBRA premiums.
- Whether you must sign a release or meet another condition to receive payment.
- What deadline applies to accepting the offer and returning documents.
There is no single federal severance formula or standard amount. If you dispute what you are owed or are unsure about the effect of a release, consult a qualified employment-law professional or the appropriate government agency.
Apply for unemployment through the right state agency
Contact the state unemployment office promptly and follow its instructions for both the initial claim and any ongoing certifications. Eligibility, wage requirements, benefit amounts, and filing procedures are determined under state rules. The Department of Labor describes the usual qualifying situation as unemployment through no fault of the worker, commonly because work is unavailable, along with applicable state work-history or wage requirements. Find your state’s unemployment filing information.
Where to file
Generally, file in the state where you performed the work. If you live in a different state from the one where you worked, or worked in multiple states, ask the unemployment agency where you now live how to route the claim. Give complete, accurate information about employers, addresses, and work dates; missing or inconsistent details can delay processing.
What to expect after filing
The Department of Labor says a first unemployment payment generally takes two to three weeks after filing. That is an estimate, not a guarantee: the timing and outcome depend on the claim and state processing. Respond to agency requests and keep submitting any required weekly or periodic certifications while the claim is pending.
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Choose health coverage before your current plan ends
Check the exact coverage-loss date and compare available plans before cancelling or allowing coverage to lapse. A plan’s premium is only part of the cost: consider the deductible, out-of-pocket maximum, doctors, prescriptions, household eligibility, and the date replacement coverage begins.
Understand COBRA eligibility, cost, and timing
Federal COBRA guidance generally applies to private-employer group health plans with at least 20 employees and to state or local government plans, subject to details and exclusions. Smaller employers may be covered by state continuation laws. A layoff other than for gross misconduct can be a qualifying event. Confirm how the rules apply to your plan with its administrator. See the Department of Labor’s COBRA guidance for workers.
Under the Department of Labor’s worker guidance, checked October 4, 2026 (the page does not state a publication year), the general COBRA election period is 60 days from the later of the date the election notice is provided or the date coverage is lost. After job loss, continuation is usually available for up to 18 months. You usually pay the full group premium plus a 2% administrative fee. Your election notice should provide the applicable deadline and premium; verify payment instructions and dates with the plan administrator.
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Compare the main alternatives
| Option | What to compare | Important timing or eligibility point |
|---|---|---|
| COBRA | Usually preserves the existing group plan and network; compare its full premium and fee with expected out-of-pocket costs. | Use the deadline and premium in the plan’s election notice; confirm dates and payment details with the administrator. DOL COBRA guidance. |
| Marketplace plan | Compare premiums after any income-based savings, deductible, out-of-pocket maximum, doctors, and prescriptions. | Loss of job-based coverage can provide a special enrollment opportunity. Voluntarily ending COBRA early generally does not by itself create a Marketplace special enrollment period. Confirm the replacement plan’s start date before ending existing coverage. HealthCare.gov’s guidance on COBRA when unemployed. |
| Spouse or household member’s employer plan | Compare the added premium and covered providers, prescriptions, and household members. | Ask that plan’s administrator about its special enrollment window and effective date. |
| Medicaid or CHIP | Check eligibility based on income and household circumstances through the relevant state channel. | Eligibility and enrollment instructions depend on your state and household facts. |
There is no blanket answer to whether COBRA or Marketplace coverage is cheaper. Compare actual plan quotes and likely total costs, and confirm the new plan’s effective date before you end current coverage.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Check whether WARN notice or transition support applies
Some large layoffs or plant closings may trigger notice under the federal Worker Adjustment and Retraining Notification (WARN) Act. The Department of Labor’s general guidance describes covered employers as generally having 100 or more employees, with notice requirements for qualifying plant closings or mass layoffs affecting at least 50 employees at a single site. The usual requirement is 60 calendar days’ advance written notice, but exceptions apply and some states have broader “mini-WARN” laws. The thresholds and exceptions are fact-specific; a layoff does not automatically qualify. Read the Department of Labor’s WARN overview and its WARN Advisor FAQs.
If a group layoff affects you, your state dislocated-worker unit or Rapid Response team may be able to explain local transition support. Ask the state agency about available services and how to access them.
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This is general U.S. federal guidance, not a decision about an individual claim. State unemployment rules, state continuation-coverage and notice laws, plan terms, contracts, and household circumstances can change what applies. Confirm current instructions with your state agencies and plan administrators.
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