9 Things to do When You Get Laid off

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Getting laid off rocks your entire world. It’s hard to see straight, much less think straight, Try getting laid off at 7 months pregnant. And these are the nine things you have to do when you get laid off to protect yourself and get reemployed faster.

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In March of 2019, I was 30 weeks pregnant when I was called into a staff meeting where everyone in the room was laid off. In fact, it wasn’t just the 20 people in that meeting there were a total of 45 of us laid off in one day.

Part of me was devastated, confused, scared, frustrated, but the other part was relieved. I knew I didn’t want to be there forever but I didn’t know if I’d have the courage to leave the salary and set out on my own. 

Fast forward a year and I have a lot of perspective on the situation and I also want to help people navigate a layoff because it’s such an emotional time and when we’re emotional we don’t make the best decisions.

Nine Things to do When You Get Laid Off

If you do these nine things before you do anything else you’ll save yourself a lot of hassle down the road. And you can make the most of a crappy situation.

1. Get your stuff

It may be too late for you if you’re watching this after your layoff but if you do have to go back to the office for any reason, don’t forget to take everything that’s yours with you. I had a wrist rest that I regret not taking. They weren’t going to reuse it would come in really handy for me right now.

This includes contacts, examples of projects you did, anything that’s not illegal to take. You don’t want to breach any agreements but you want to take anything that can help your job search or give proof as to what you’re capable of.

2. Familiarize yourself with your termination paperwork

This includes severance pay, severance benefits, non compete restrictions, etc. You’re not entitled to severance but you may be able to negotiate one, you’ll never know if you don’t try. One to two weeks’ pay for each year you worked is reasonable. Or you could ask for unused sick or vacation time, health insurance assistance, or 401(k) benefits.

We were given 5 weeks severance pay and one-month continuation of health insurance. Some employees signed non compete agreements that lasted one year after termination. I distinctly remember signing one but somehow it was magically not included in my termination paperwork. So don’t assume you know what’s in there, read it all, and bring questions to your former HR department.

You may be able to negotiate a severance. I was part of a mass layoff so there was no room to negotiate for me. I just walked around that office and stuck my belly out a little farther when I walked past the boss.

3. Know what you’re owed and when you’re getting it

If it doesn’t state it in your termination paperwork, ask HR when and how you’ll be receiving your last paycheck.  In some states, employers are required to pay it immediately. In others, it may come as scheduled.

Read your onboarding paperwork too. You may be entitled to accrued vacation, sick leave, overtime, or back pay. Be sure to speak with your HR representative to learn what’s owed to you, and how you’ll be compensated.

4. Decide on health insurance

Don’t let your health insurance coverage lapse after a layoff. With all that time on your hands, you’re more likely to take up skateboarding and end up in the ER than when you had reliable healthcare coverage.

You have two choices for health insurance. First is COBRA, the health insurance program that allows you and your dependents to continue on your former employer’s health insurance coverage for up to 18 or 36 months. 

You have 30 days to enroll, at the time of this record you actually have 60 days but that’s temporary. What isn’t temporary is that COBRA is expensive. In addition to what you were already paying every month, you’ll also pay the portion your employer was covering and a 2% administration fee. If you have an HSA you can pay your monthly COBRA premium from that account but it’s not ideal.

If you have an FSA, the money you contributed will go back to your employer after you’re laid off unless you opt to continue your plan through COBRA. This could be something to negotiate for as a severance payment or a reason to extend your coverage through COBRA so you can use those funds.

If you’re not tied to your employer’s plan, you’re better off checking the marketplace for cheaper coverage. Check your eligibility for Medicaid, and your options on Healthcare.gov and through private insurers. 

5. File for unemployment

There is nothing more frustrating than filing for unemployment. I am an organized competent individual and I made it through one week of correctly filing. The internet says you should do it immediately but you actually have to wait about a week. But don’t wait longer than a week. Once you submit you’ll hear back shortly about your status.

You have to recertify every week or two within a tiny window of time or else you have to start the process all over again. I kept missing that window and I just got tired of starting the process over and over again. 

6. Ask for letters of recommendation

If you’re laid off due to downsizing or lack of work, ask for everything and anything you can that’ll help you get another job in the future. Chances are your employers feel bad about your situation so don’t be shy, take advantage of that to help you in the future.

7. Rollover your 401k

This one is super important. No matter how little is in your 401k, you need to roll it over into an account you control. For a traditional 401k, 403b, etc. that’s going to be a traditional IRA. If for some reason you have a Roth 401k then you’ll roll it over into a Roth IRA.

It’s better to rollover your 401(k)’s into an IRA whenever you leave an employer instead of rolling it into a 401k with your new company because you don’t know what kind of investment options your new employer will have. It’s much better to roll it over into an IRA because you control where it’s at and what’s in it, which can sound scary but it really isn’t.

Fidelity is the largest provider of 401k’s and you can easily roll one of their 401k’s into an IRA or call up any brokerage firm and they’ll walk you through how to do it. If you’re not sure what to put it in I’m not an investment advisor but a target date fund is totally fine to get started, it’s most important that you get your money in an account you control. 

If you’ve purchased stock in your company, you should also ask HR what happens to that stock and decide if you want to keep it.

8. Change your HSA email

If you had an HDHP with an HSA, you won’t lose your HSA due to a layoff like you would an FSA. An HSA stays with you and any balance over $2,000 can be invested like your 401k! But that means after you leave your job you need to make sure you retain access to the account.

I didn’t do this and it came back to haunt me. I had my work email and password and I thought that would be enough but one day my password stopped working and because I didn’t have access to that work email I could access the account. And the last thing you want to do in six months is email your former HR department and get them to help you reset your password.

9. Reevaluate what you want to do with your life

Losing your job is hard but before you jump right back into another job search, take this time to reevaluate what you want to do for the rest of your working life. It’s not often you get the chance to meditate and brainstorm your plans for the future.

I didn’t do this, I dove headfirst into refilling my plate with work, and yes I was 30 weeks pregnant. But I’d started my job knowing it was a stepping stone to do something else and I took it as a sign that it was time to start the career I’d been planning. But there were things I could’ve done in that season that I couldn’t with a full workload and I wish I’d taken more time to get some of those projects completed.

Don’t let this time pass you by without taking advantage of it to the best of your ability.