What to Do in Your First 48 Hours After Getting a Layoff Notice

Getting laid off is disorienting, even when you saw it coming. One minute you're an employee with a routine and a paycheck; the next, you're holding a severance packet and wondering what happens to your health insurance. The good news: the first 48 hours after a layoff don't require you to figure out your entire future. They require a handful of practical moves that protect your money, your benefits, and your legal options. Here's exactly what to do after a layoff notice, hour by hour.

Quick Answer: What Should You Do Right After a Layoff Notice?

In the first 48 hours after a layoff notice: (1) do not sign the severance agreement yet, (2) request the full severance agreement in writing, (3) check your WARN notice for the content required in 2026, (4) if you're over 40, confirm your legal review window (21–45 days under federal law), and (5) document everything from day one. Then file for unemployment benefits, review your health coverage end date, and negotiate your severance before signing.

Hours 0–2 After a Layoff: The Five Non-Negotiables

1. Do not sign anything yet

If you're handed a severance agreement in the layoff meeting, resist the pressure to sign on the spot. You almost never have to. Signing a severance agreement immediately usually means waiving legal claims you haven't had time to think about. Say something simple: "Thanks, I'd like to review this before signing." No one reasonable will hold it against you, and it keeps every door open.

2. Request a copy of your full severance agreement in writing

Not a verbal summary, not a one-page overview — the complete severance document, including any exhibits, releases, and referenced policies. You cannot evaluate (or negotiate) severance terms you've never seen, and a written copy starts your review clock with proof of when you received it.

3. Check your WARN notice for the required 2026 content

If you're part of a mass layoff, you may be entitled to a formal WARN Act notice. In California, WARN notice requirements expanded on January 1, 2026: under SB 617, Cal-WARN notices must now include a description of Rapid Response activities, an overview of CalFresh (the state food assistance program) with its benefits helpline and website, an employer contact email and phone number, and contact information for your local workforce development board. Employers must also state whether they plan to coordinate transition services through the local workforce board or another entity — and if they don't plan to coordinate with anyone, they must say so in the notice. A WARN notice missing this content may be non-compliant, which matters if you later consult an employment lawyer. Other states have their own mini-WARN laws, so check yours.

4. If you're over 40, your review window may be longer than they told you

Under the federal Older Workers Benefit Protection Act (OWBPA), workers 40 and older generally get at least 21 days to consider a severance agreement that waives age-discrimination claims — and 45 days in a group layoff — plus 7 days to revoke after signing. If HR implies you need to decide by Friday, that deadline may not match your actual legal rights.

5. Document everything from today

Start a running file — on a personal device, not a work one. Note who told you what and when, save the layoff notice and any relevant emails to your personal address (without taking proprietary material), photograph physical documents you're handed, and write down anything said in the meeting while it's fresh. If any dispute arises later — over severance, unemployment benefits, references, or the legality of the layoff — this documentation is worth its weight in gold.

While you're still in the room (or on the call), ask three questions if they haven't been answered:

1. What is my official last day of employment?
2. When does my health coverage end?
3. Will the company contest unemployment benefits?

Write the answers down. Details get fuzzy fast on a stressful day.

Hours 2–24: Secure Your Information and Your Money

Save what's yours before access disappears

Companies often cut system access within hours of a layoff. From your personal accounts (never by forwarding work files, which can violate policy or law), make sure you have: personal contacts you've built, copies of your own performance reviews if permitted, your recent pay stubs, and any records of bonuses, commissions, or unvested equity. Don't take proprietary material — it's not worth the legal exposure.

Take stock of your cash runway

Open a simple document and list: checking and savings balances, upcoming bills, severance amount and payout schedule, unused PTO payout (required in some states), and your final paycheck date. Knowing you have, say, four months of runway changes panic into a timeline.

File for unemployment benefits — or find out when you can

Unemployment insurance exists precisely for this. Eligibility rules vary by state and country, and severance pay can affect timing, but there's no shame and no downside in filing for unemployment as soon as you're eligible. Many people leave money on the table by waiting weeks.

Close the health insurance gap

In the US, COBRA lets you keep your employer health plan after a layoff, but it's expensive; a marketplace plan through a special enrollment period is often cheaper. Elsewhere, check what your national system requires when employment ends. The key task today is knowing your coverage end date so nothing lapses by accident.

Hours 24–48: Set Up Your Exit on Good Terms

Read the severance agreement carefully

Now review the full written copy you requested. Look for non-compete or non-solicit clauses, what claims you're releasing, whether severance is contingent on anything (like signing an NDA), and how references will be handled. Confirm the review window stated in the document matches your legal minimum (see point 4 above if you're over 40). If the numbers are significant or anything looks aggressive, an hour of an employment lawyer's time is money well spent — and in some cases they'll spot leverage to negotiate a better severance package.

Negotiate for more than money

Severance negotiation isn't only about weeks of pay. Companies often say yes to: extending your health coverage, letting you keep your laptop, a neutral or positive reference letter, an agreed-upon "official story" for the departure, accelerated vesting, or covering career-coaching services. The worst answer is no.

Line up references now

Ask two or three managers or colleagues while goodwill is fresh. A quick message — "Would you be comfortable being a reference for me?" — is easier to send today than three months from now.

Tell your people

Not LinkedIn yet, unless you want to — but your partner, family, or a close friend. Layoffs breed a strange instinct toward secrecy, and secrecy makes everything heavier. Saying it out loud once makes it easier to say it strategically later.

What NOT to Do in the First 48 Hours After a Layoff

• Don't fire off angry messages to your manager, HR, or Slack channels. Screenshots are forever, and the industry you're in is smaller than it feels.
• Don't immediately overhaul your resume at midnight. You'll do better work after a day of rest, and rushed applications rarely land.
• Don't make big financial moves — cashing out a 401(k), booking a "reset" trip, or paying off debts aggressively — before you've mapped your runway.
• Don't treat the layoff as a verdict on your worth. Layoffs are business math about roles and budgets. The person who held the role is a separate matter entirely.

The One Thing to Remember

The first 48 hours after a layoff notice aren't about finding your next job. They're about closing this chapter without leaving money, benefits, or relationships on the table — so that when you do start the job search, you're doing it from stable ground instead of scrambling. Protect the practical stuff now. The future can wait until Monday.

Frequently Asked Questions About Layoffs and Severance

Do I have to sign my severance agreement immediately?

No. You are almost never required to sign a severance agreement on the spot, and doing so usually waives legal claims you haven't reviewed. Ask for the full agreement in writing and take your time. If you're 40 or older, federal law generally gives you at least 21 days to review (45 days in a group layoff) plus 7 days to revoke after signing.

What is a WARN notice and am I entitled to one?

The federal WARN Act requires employers with 100 or more employees to give 60 days' written notice before a mass layoff or plant closing. Many states have stricter "mini-WARN" laws — California's Cal-WARN applies to employers with 75 or more employees. As of January 1, 2026, California WARN notices must also include information about Rapid Response services, CalFresh food assistance, employer contact details, and your local workforce development board.

Can I collect unemployment if I received severance pay?

In most states, yes — but severance can affect when your benefits start or their amount, depending on how the payment is structured. Rules vary by state, so file (or check eligibility) with your state unemployment agency as soon as possible rather than assuming severance disqualifies you.

What happens to my health insurance after a layoff?

Employer coverage typically ends on your last day or at the end of that month — confirm the exact date with HR. In the US you can continue coverage through COBRA (usually expensive) or buy a marketplace plan through a special enrollment period triggered by job loss, which is often cheaper.

Can I negotiate my severance package?

Often, yes. Beyond additional weeks of pay, employers frequently agree to extended health coverage, a positive or neutral reference letter, keeping your laptop, accelerated equity vesting, or outplacement services. If the amounts are significant, a one-hour consultation with an employment lawyer can identify leverage you didn't know you had.

Should I mention the layoff on LinkedIn right away?

There's no rush. Take 48 hours to secure documents, benefits, and references first. When you do post, a brief, forward-looking announcement tends to generate leads; there's no obligation to share details about the layoff itself.

This article is general information, not legal or financial advice. Severance, unemployment, and health-coverage rules vary by location — when in doubt, check your state or national agency, or consult an employment attorney.