Find out how to navigate your legal rights via employment laws after a job loss.
Getting fired unexpectedly can be a shocking and stressful experience. Many employees assume that terminations come with warnings, but sometimes they happen without clear signals. According to an article on Forbes, some employees have been fired with no prior negative feedback or performance reviews, leaving them completely blindsided.
You probably have a million things running through your mind right now. Do you get severance if you get fired? What if I’ve been unfairly laid off? But my job was eliminated. What are my rights then?
Regarding your financial situation, the rules might not be crystal clear since severance isn’t guaranteed by law. Many companies do offer severance pay as a way to show their appreciation and ease your transition. Whether you’ve been fired or laid off, understanding the ins and outs of severance can make a big difference during this challenging time.
Instead of severance pay, you may have compensation opportunities if your job loss relates to discrimination, and you’ve been unfairly let go. We’ve compiled everything you need to know about your rights in this difficult time, even if you’re worried about getting severance when you’re fired or laid off. By the end of this article, you’ll feel more prepared to take the next steps and ensure you’re treated fairly.
Your Legal Rights When You’re Fired or Laid Off
Being fired or laid off doesn’t feel nice, but you’ve got some legal protections to lean on. With your monthly paycheck suddenly being cut off, knowing whether you get severance if you’re fired or laid off can help you prepare for the short-term future. When it comes to maintaining health insurance coverage and receiving unemployment benefits, to protection under anti-discrimination acts, there are laws to back you up.
Your Rights If You’re Fired
When you’re fired from a job, your rights are designed to provide a safety net and protect against unfair practices. Here’s a look at each of these rights:
1. Right to Receive Your Final Paycheck
The specifics regarding your final paycheck vary depending on the state where you worked. Some states, such as California, require a terminated employee to be paid immediately, while others, like New York, allow companies to wait until the next payday. Either way, though, you are entitled to be paid your final wages.
2. COBRA Continuation of Health Coverage
The Consolidated Omnibus Budget Reconciliation Act (COBRA) offers a safety net for your health needs. It allows you and your family to continue group health benefits provided by your plan under certain circumstances. If eligible, you can extend your health coverage for a limited period of 18 to 36 months, depending on the qualifying event.
3. Unemployment Benefits
You generally qualify for unemployment benefits if you’re terminated through no fault of your own. The specifics, including the amount and how long you can receive them, are determined by state law. You must apply through your state’s unemployment insurance program, and it typically takes a few weeks to start receiving payments.
4. Protection Under Anti-Discrimination Laws
Federal laws protect employees from termination based on race, color, national origin, sex, religion, disability, genetic information – such as your family medical history, and age (if you’re at least 40 years old). If you believe your termination was based on any of these protected categories, you can file a charge with the Equal Employment Opportunity Commission (EEOC).
5. Protection Under Wrongful Termination Laws
Outside of discrimination, if you believe your firing was illegal—for example, as retaliation for filing a workers’ compensation claim, whistleblowing, or taking maternity or medical leave under the Family Medical Leave Act (FMLA)—you might have a case for wrongful termination. This area of law is complex, so consult with a labor lawyer to understand the merits of your case.
Your Rights If You’re Laid Off
When you’re faced with a layoff, it’s crucial to remember that you have several rights in place. These rights are not just meant to protect you, but also to provide some support during this transition. Let’s delve into them in more detail:
1. Access to Your Final Paycheck
Like being fired, you are entitled to receive your final paycheck within a timeframe specified by state law. This varies by state, but typically must be given on the last day of work or within a short period after that. Make sure you check your state’s specific laws to ensure compliance.
2. COBRA Continuation of Health Coverage
Under the COBRA act, if your employer provided a health insurance plan and had at least 20 employees, you generally have the right to continue your health insurance under the company’s group plan for a limited period, typically 18 months.
3. Unemployment Benefits
You can apply for unemployment if you meet the eligibility criteria, such as having worked a certain number of hours and being laid off through no fault of your own. These benefits provide financial assistance while you search for new employment.
4. Protection Under the Worker Adjustment and Retraining Notification (WARN) Act
The WARN Act requires employers with 100 or more employees to provide at least 60 days’ notice of the layoff. If the employer fails to provide adequate notice, you may be entitled to wages and benefits for each day of insufficient notice, up to 60 days.
5. Right to Non-Discrimination
Layoffs must be conducted in a manner that does not discriminate against employees based on protected characteristics such as race, sex, age, disability, etc. It could be considered discriminatory if the layoff targets a specific group disproportionately.
Do You Get Severance If You Get Fired?
The Fair Labor Standards Act (FLSA) does not require employers to provide severance when you get fired. However, some state or local laws might have specific requirements or conditions under which severance must be paid.
Whether you receive severance pay depends on your employer’s policies and the circumstances surrounding your termination. Many companies have policies outlined in employee handbooks or employment contracts. The specifics can vary widely, so it’s crucial to empower yourself by understanding the terms of your contract.
Sometimes, even if not initially offered, the severance you get when fired can be negotiated as part of a termination agreement. This might be the case if there are any disputes around your termination or to ensure a smoother transition without legal action.
For more detailed legal information, use the following resources to delve into specific legal topics, find state-specific legal advice, and even connect with professionals specializing in employment law.
- The Equal Employment Opportunity Commission (EEOC)
- The U.S. Department of Labor (DOL)
- The American Bar Association (ABA)
- The National Conference of State Legislatures (NCSL)
Does Severance Pay Stop If You Find Another Job?
Typically, when you get severance if you’re fired or laid off, it doesn’t stop if you find another job. Severance packages are predetermined agreements between you and your employer at termination.
They are generally designed to pay out regardless of your future employment status. However, it’s essential to review the terms of any severance agreement to understand the specifics, as some contracts might include unique clauses.
Remember that if your severance is paid as a lump sum, it’s given all at once and unaffected by any future employment. If it’s paid in installments, these payments typically continue according to the agreed schedule, even if you find a new job. So, no need to worry!
Ways of Being Laid Off Unfairly
Instead of getting severance when you’re fired, you may have an opportunity to pursue compensation if you’ve been laid off unfairly. So, it’s essential to understand your rights and potential next steps. If any of the below scenarios apply to you, document everything related to your layoff, ask for clear reasons from HR, and consider speaking with a labor attorney.
- Discrimination. If you suspect your layoff disproportionately affected you because of your race, gender, age, religion, disability, or other protected status, it could be discriminatory. Laws like the Civil Rights Act, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) protect you against such discrimination.
- Retaliation. It’s illegal for an employer to lay you off in retaliation for engaging in legally protected activities. This includes filing a complaint or lawsuit against them for discriminatory practices, participating in an investigation, or whistleblowing on illegal activities.
- Labor law violations. Your layoff might be legally unfair if your employer didn’t follow labor laws, such as the Worker Adjustment and Retraining Notification (WARN) Act, which requires large employers to provide at least 60 days’ notice before significant layoffs or plant closures.
- Breach of contract. If you had a contract that included specific protections against layoffs or stipulated certain conditions for layoffs, and your employer did not honor these terms, this could be a breach of contract.
Unfortunately, there are instances where your layoff may feel ethically unfair yet remain legally permissible. For example, your employer might have to downsize, reorganize, or eliminate positions due to financial or strategic reasons, which, while harsh, are legal actions.
Performance-based layoffs can also seem unjust, particularly if evaluation criteria seem opaque. Still, these are typically legal layoffs unless tied to discriminatory practices. While these situations are frustrating, they often don’t provide legal grounds for a challenge.
Can I Sue My Employer for Laying Me Off?
If you’re not eligible to get severance when you’re fired or laid off, you could pursue a lawsuit if your layoff violates specific legal standards, as mentioned earlier. However, if your layoff was executed in compliance with all applicable laws, particularly in states where at-will employment prevails, legal action may not be viable.
It’s crucial to consult with an employment lawyer first. They can thoroughly assess the details of your situation and determine if you have a legitimate claim against your employer. Federal laws protect employees from discrimination in the workplace based on several protected characteristics. Here are the primary ones you should know about:
Is Terminating Employees Over 50 Legal?
If you’re over 50 and have been terminated, it’s legal if your employer acted for legitimate business reasons. However, if your termination was primarily due to your age, it could be considered illegal under the Age Discrimination in Employment Act (ADEA). In this case, getting severance if you’re fired is completely feasible, for example.
At the federal level, the ADEA protects employees 40 or older from employment discrimination based on age. This includes various aspects of employment, such as hiring, promotions, layoffs, compensation, and benefits. Unfortunately, the law only applies to employers with 20 or more employees, including government agencies, employment agencies, and labor organizations.
The Older Workers Benefit Protection Act (OWBPA) of 1990 is a significant amendment to the ADEA. It provides several key protections to ensure that older employees are not unfairly disadvantaged in terms of benefits or when they are asked to sign waivers of rights in exchange for severance packages.
1. How are Minority Groups Protected in the Workplace?
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race or skin color. It also protects people from being discriminated against due to their religious beliefs. Under this act, discrimination is illegal based on national origin, which relates to the country where a person was born or where their ancestors came from.
2. Can Your Employer Dismiss You for Your Sex or Gender?
Discrimination based on sex can encompass gender identity, sexual orientation, and pregnancy. Protections against sexual harassment are also included under this category. The Pregnancy Discrimination Act (PDA) is an amendment to Title VII that specifically prohibits discrimination based on pregnancy, childbirth, or related medical conditions.
3. Can You Be Fired for Your Disability?
The Americans with Disabilities Act (ADA) prohibits discrimination against people with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places open to the public. It also requires employers to provide reasonable accommodations to employees with disabilities.
4. Can Your Employer Use Your Genetic Information in HR Decisions?
The Genetic Information Nondiscrimination Act (GINA) is a crucial law that prevents discrimination based on genetic information. This includes information about an individual’s genetic tests and the genetic tests of their family members, as well as family medical history.
Is it Ok That I Got Laid Off Without Warning?
Whether it was appropriate for you to be laid off without warning depends mainly on the legal context and any specific agreements you might have with your employer. While it’s natural to feel concerned about the sudden lack of job security, checking your employment contract and federal and state laws first will help you fully understand your rights.
Can an Employer Lay You Off Without Notice?
The answer largely depends on the nature of your employment agreement and applicable laws. Most employment is considered “at-will,” which means employers can terminate the employment relationship at any time for any reason or no reason. This is the default setup for most cases unless there is a specific contract or agreement in place that states otherwise.
However, there are exceptions to this general rule. For example, suppose you are part of a union and covered under a collective bargaining agreement. In that case, specific provisions may require your employer to provide notice before layoffs.
Additionally, under the federal Worker Adjustment and Retraining Notification (WARN) Act, employers with 100 or more employees must provide at least 60 days’ notice of a plant closing or mass layoff affecting 50 or more employees at a single site. This law is in place to protect your rights as an employee, ensuring you have sufficient time to prepare for any potential job loss.
What Are My Rights When My Job is Eliminated?
When your job is eliminated, you generally have the same rights as if you were laid off. Both scenarios are typically treated similarly under employment laws concerning employee rights and benefits.
In most cases, you can get severance if you get fired because your job was eliminated. Companies are more likely to offer it as a gesture of goodwill and to mitigate the abruptness of your job loss. This is true, especially since reemployment within the same company is unlikely, as the role itself ceases to exist.
What Are My Employee Rights When a Company Closes Down?
If your job loss is a result of the company you work for closing, you have the same rights as if you were laid off or your job was individually eliminated. In addition, if you’re owed wages, vacation pay, or other compensation, and the company fails to pay, you may have the right to file a claim with your state’s labor department. If this happens, you could also pursue legal action to recover those wages.
In your favor, the company might be more likely to provide severance as if you got fired or laid off, especially if it wishes to settle accounts and dissolve the company cleanly. This depends significantly on the company’s financial health and policies at closing.
Count on Monster to Help You Find a New Opportunity
Getting severance when you’re fired or laid off can help cushion the blow and give you some time to consider your next step. We’re here to help you on your journey. Sign up for your free profile on Monster and you’ll receive customized job alerts, career advice, and job search tips straight to your inbox. Upload your resume, and we’ll match you with positions that align with your values, goals, and experience.
None of the information provided herein constitutes legal advice on behalf of ZP Enterprises.