September saw a significant increase in the number of U.S. workers receiving pink slips as a result of the Federal Reserve’s efforts to reduce inflation.
In September, layoffs increased by 46% from August to roughly 30,000. Key factors that are easy to overlook in the heat of a terrible moment but can have a significant impact on a person’s immediate financial prospects following a layoff are the rights they have when they lose their jobs and the procedures they should take upon being fired.
Christopher Q. Davis, an employment attorney in New York City, stated, “Most employees do not appreciate how much is at stake with a layoff or separation that is not due to wrongdoing.” There is a substantial amount of money and rights at stake that most people do not consider, and there is a great deal that could go wrong.
The majority of workers in the United States are employed under “at-will” contracts, which let either the employee or the employer to end the arrangement at any time, for any reason, as long as it is not discriminatory.
Nonetheless, state and federal laws may entitle terminated employees to pay and benefits. And even though a corporation is not compelled by law to provide a severance package to a laid-off worker, it may have a program in place to help laid-off people find new employment.
Make sure you’re qualified for unemployment
The first thing a laid-off worker should do is check with their state’s labor department to see if they are eligible for unemployment compensation. In most cases, employees who lose their jobs through no fault of their own are eligible for unemployment benefits. According to Davis, however, employers will occasionally fight the unemployment eligibility of workers in an unjust manner.
“Make sure the firm acknowledges that your termination qualifies you for unemployment,” he said. “That is a topic up for discussion. Say, “Hey, you won’t be challenging my eligibility.””
If the employee has engaged in misbehavior, they are ineligible for unemployment benefits.
“Many individuals go through the jobless process without seeking assistance. It is self-promotion “Davis said.
If you are part of a mass layoff, you will receive unemployment benefits.
Under The Worker Adjustment and Retraining Notification (WARN) Act, if your job loss is the result of an entire facility closing — for example, if a corporation closes a manufacturing plant, resulting in mass layoffs – the employer must offer at least 60 days’ notice.
“You should contest if you are laid off without warning,” Davis advised.
Consult a lawyer if you are the victim of a mass layoff and believe you have been discriminated against. Davis stated, “With big layoffs, things are assembled clumsily, and layoffs are rife with bias.”
Companies are prohibited from terminating employees on the basis of protected characteristics, such as color, age, or sex, or in reprisal for protected activities, such as reporting misbehavior or joining a union.
Request a detailed list of all laid-off employees, including their titles and ages, in order to evaluate whether the decision was discriminatory. Davis stated, “If it disproportionately affects a protected class, there may be a case for discrimination.”
Can I receive separation pay?
Workers in the United States have access to a very fragile government safety net in the event of a layoff, as well as limited knowledge regarding their rights when their employer reduces their hours.
Unless agreed as part of a contract or CEO remuneration package, companies are not compelled by law to pay severance to former employees. However, many firms have programs that provide former employees with benefits and compensation.
“The fact that an employee has been terminated or laid off does not entitle them to severance pay or an exit package. There is no legal right to that “Laura Reathaford, an employment attorney at Lathrop GPM in Los Angeles, stated as much.
However, laid-off employees may negotiate severance benefits if they are offered.
“If you are offered a severance package, you have the right to evaluate the conditions and speak with an attorney,” Reathaford stated.
In exchange for extra income and benefits, the employee is typically required to waive the right to sue the company and to publicly criticize them. Reatherford underlined that it is up to the employee to determine if they wish to accept the terms.
“In exchange for money, as an employee you give up the right to sue your company for anything,” she stated. “If the company is unwilling to increase your salary, you have the right to walk away and not sign the contract.”
What about medical insurance?
Under COBRA, workers can normally extend their health insurance coverage for a period of time, but they may be obliged to pay the entire price for coverage that would otherwise cease with the employee. This may result in a substantial premium rise.
Carrie Hoffman, an employment attorney at Foley & Lardner in Texas, advised, “Ask your employer when your medical insurance finishes, understand your COBRA rights, and calculate the expense of maintaining your medical benefits after termination.”
Pay for vacation time
Depending on the state, employees may also be eligible to reimbursement for unused vacation days.
In California, for instance, employees who accrue paid time off but do not utilize it are obligated by law to be compensated for it in their final paycheck.
In contrast, “other states have ‘use it or lose it,’” meaning that if an employee has not used their vacation time, they are not entitled to a payout upon termination of employment, according to employment attorney Anthony Zaller of California.
Methods of thumb
Certainly, a productive employee who has earned their employer’s goodwill may request a favorable reference or access to resources, such as career counseling, that could assist them in finding a new position. Some employers pay for job-search consulting services voluntarily.
“It is always beneficial to inquire and have an open discussion about your wants and needs. It is acceptable to request severance, as well as assistance in finding a new work and a positive letter of recommendation “Reathaford remarked.
Added Hoffman: “Regardless of how terrible it may be to have been terminated, I always advise avoiding burning bridges and working with, rather than against, the situation at hand. There may be prospects within the company, in theory. Inquire if you are qualified for rehiring.”
In other words, glean knowledge from your company and attempt to leave on a high note.
“Don’t act inappropriately when you leave. Maintain your professionalism, “says Monster.com employment consultant Vicki Salemi