What to do if you are fired or laid off

File with your state's unemployment agency in the same week you lose the job. Benefits generally run from the date you file rather than the date you were separated, so delay is money forgone permanently.

File in the state where you worked, not where you live, if they differ. If you worked in multiple states, the agency will tell you which claim to pursue.

Do not assume being fired disqualifies you. Every state disqualifies for 'misconduct', but misconduct means a willful disregard of the employer's interests — not poor performance, not being a bad fit, not failing to meet targets, and not a personality conflict. Someone fired for not being good enough at the job is usually eligible.

Quitting generally does disqualify, unless you had good cause attributable to the work — unsafe conditions, a substantial unilateral change in pay or duties, harassment, or in many states following a spouse's job relocation or leaving because of domestic violence.

You will need your Social Security number, employment history for the past 18 months with dates and employers' details, and the reason for separation. Give a factual account and avoid characterising it — 'my position was eliminated' or 'I was terminated for performance' rather than editorial.

Expect a waiting week in many states, and expect the employer to be given an opportunity to contest. If they do and you are denied, appeal — appeal rates of success are meaningful and the process is free.

Keep certifying weekly or biweekly as your state requires, and record your work-search activities if they are required. Missing a certification stops payment even after you are approved.

Unemployment benefits are taxable income. Elect withholding when you file, or set money aside, because a tax bill on benefits is a common and avoidable shock.

Losing job-based coverage is a qualifying life event that opens a 60-day special enrollment period on the ACA Marketplace at HealthCare.gov. This is the most important deadline of the whole process after unemployment.

Compare the Marketplace against COBRA before defaulting to COBRA. COBRA lets you keep your existing plan, but you pay the full premium — both your share and the employer's — plus an administrative percentage, which frequently means a bill several times what you were paying.

Marketplace premiums are income-based, and your income has just fallen. Many people who lose a job qualify for substantially subsidized coverage, and some for very low premiums, precisely because subsidies are calculated on expected income for the year.

Check Medicaid eligibility as well. It has no enrollment window at all, applications are accepted year-round, and eligibility is based on current monthly income in most states, which a job loss changes immediately.

COBRA has a genuine advantage in one situation: mid-treatment continuity. If you are in the middle of a course of treatment with a specific provider, or have met a large part of your deductible for the year, keeping the same plan can be worth the cost.

You have 60 days to elect COBRA and it is retroactive to the date coverage ended, which means you can decline it initially and still elect within the window if something happens — a real option worth knowing about, though it requires paying the back premiums.

Do not simply go uninsured. An unexpected hospitalization uninsured is the single largest financial risk in American life, and the Marketplace and Medicaid exist precisely for this situation.

There is no legal entitlement to severance in the United States unless a contract, policy or collective agreement provides it. What is offered is usually offered in exchange for something: a release of claims against the employer.

Do not sign immediately. If you are 40 or over and the severance includes a release of age discrimination claims, the Older Workers Benefit Protection Act gives you at least 21 days to consider it — 45 days for a group termination — plus 7 days to revoke after signing. These periods cannot be waived, and being pressured to sign on the spot is itself a warning sign.

Read what you are releasing. A general release typically waives all claims including discrimination, unpaid wages and retaliation. Check whether it purports to waive your right to file with the EEOC — an employer can waive your right to recover money, but cannot lawfully bar you from filing a charge or cooperating with an investigation.

Check for non-disparagement, confidentiality and non-compete terms. The enforceability of non-competes varies sharply by state, several states ban them outright for most workers, and the federal position has been litigated — do not assume a non-compete in a severance agreement is enforceable, and do not assume it is not.

Check how severance affects unemployment. In some states severance delays benefits, in others it does not, and how the payment is characterized and timed can matter. Ask the state agency.

Severance is negotiable more often than people assume, particularly on the amount, the continuation of health coverage, the reference given, and the characterization of the separation.

If the termination might have been discriminatory or retaliatory, get advice before signing anything. Employment attorneys frequently review severance agreements for a fixed fee, and several federal statutes shift attorney fees to a losing employer, which is why lawyers take strong cases with modest damages.

Get your final paycheck. Timing is state law and ranges from immediately on termination to the next regular payday. Accrued vacation payout also depends on state law — some states treat it as earned wages that cannot be forfeited, others leave it to policy.

Check for a WARN Act notice. Larger employers conducting mass layoffs or plant closings must generally give 60 days' notice, and failure can entitle affected workers to pay and benefits for the notice period. Several states have their own, stricter versions.

Handle your 401(k). Leave it, roll it into an IRA, or roll it into a new employer's plan. Do not cash it out — the tax plus early withdrawal penalty is severe, and it is the most expensive decision available at exactly the moment it feels most tempting. A direct rollover avoids withholding entirely.

Track down anything owed: unreimbursed expenses, commissions, bonuses earned under a plan, and equity that may have a short post-termination exercise window — often 90 days, and easy to miss.

Update your address with the employer for tax documents, and make sure you receive a W-2 in January.

If you believe the termination was discriminatory, retaliatory, or for taking protected leave, the EEOC deadline is 180 days, extended to 300 where a state agency enforces an equivalent law. Filing is free, needs no lawyer, and is a prerequisite to most federal discrimination suits. The clock does not pause while you consider a severance offer.

For unpaid wages or overtime, the Department of Labor's Wage and Hour Division takes complaints free, confidentially, and regardless of immigration status.