The 60 days between a WARN notice and your last day are a clock. Three decisions in particular are time-sensitive, and getting the deadlines wrong can cost you money or coverage. Here is what the law actually requires.
1. Unemployment: file the moment your last day is set
If you were laid off through no fault of your own, you almost certainly qualify for state unemployment insurance, which generally pays benefits for 12 to 26 weeks depending on the state. The key rule: benefits are not retroactive, so every week you wait to file is money you do not get back. (Legal Aid at Work) File with your state agency as soon as your separation date is confirmed.
2. Health coverage: you have 60 days, and a cheaper option
When job-based coverage ends, you get 60 days from the later of your qualifying event or the date you receive your election notice to choose COBRA, which can continue your existing plan for up to 18 months. Your employer must notify the plan administrator within 30 days, and the administrator then has 14 days to send your election notice. (DOL guide to COBRA)
COBRA is not your only option. Losing job-based coverage also opens a 60-day special enrollment period on the ACA marketplace, where plans are often cheaper than COBRA once income-based premium tax credits are applied. (DOL) It is worth pricing both before you elect.
3. Severance: usually optional, sometimes guaranteed
There is no federal law requiring private employers to pay severance. (DOL) Whether you get it usually depends on company policy, your contract, or a negotiated agreement. The big exception is New Jersey, where the state's amended WARN law makes one week of severance per year of service mandatory for covered layoffs. We cover the state differences in WARN Act by State.
If you are offered a severance agreement, read it carefully before signing. These documents often ask you to waive legal claims, including potential WARN claims, in exchange for the payment.
A quick checklist
- File for unemployment as soon as your last day is confirmed.
- Price COBRA against an ACA marketplace plan within your 60-day window.
- Confirm in writing what severance, PTO payout, and final pay you are getting.
- Do not sign a severance waiver until you understand what claims you are giving up.
To plan around your timeline, find your employer on the live feed or see what is scheduled near you on the upcoming calendar.