Your first week after a layoff checklist has one job: catch every deadline before it passes. In the first seven days, read (but don't rush to sign) your severance agreement, confirm your final pay, file for unemployment, choose between COBRA and a Marketplace health plan, check what happens to your 401(k) and any stock, and line up references. Job applications can start next week. A layoff is a business decision that happens to good people every year, and getting the paperwork right now gives you room to search calmly later.
The deadlines below were checked on official US government sources as of October 2026. This is general information, not legal, tax or immigration advice. Many rules vary by state, and your own agreement and plan documents can change the details, so confirm each item on the linked official page or with a qualified professional. For the full 30-day picture, start with our hub on what to do after a tech layoff.
The first week after a layoff checklist at a glance
| Task | Deadline or timing | Why it matters | Where the rule comes from |
|---|---|---|---|
| Read the severance agreement and release | The review period stated in the agreement; if you're 40+ and it waives age claims, at least 21 days (45 in a group layoff), plus 7 days to revoke after signing | Signing usually releases legal claims in exchange for the payment | EEOC, Older Workers Benefit Protection Act |
| Confirm your final paycheck | Set by your state; federal law doesn't require it immediately | Some states require faster or immediate payment; ask about unused vacation too | US Department of Labor, your state labor department |
| File for unemployment insurance | As soon as possible after your last day | Delays can cost you weeks of benefits; the first payment often takes two to three weeks | US Department of Labor, your state UI agency |
| Elect COBRA or pick a Marketplace plan | 60 days to elect COBRA; 60 days after losing job-based coverage to pick a Marketplace plan | A gap in coverage is expensive if something happens | US Department of Labor, HealthCare.gov |
| Check any 401(k) loan | Check your plan's terms; an unpaid loan can be offset when you leave | An offset can count as a taxable distribution unless rolled over in time | IRS |
| Check stock option exercise windows | Whatever your grant agreement says; ISO tax treatment generally requires exercising within 3 months of leaving | Unexercised options can expire | Your equity plan, IRS Publication 525 |
| Work visa holders: note the grace period | H-1B: up to 60 consecutive days or until your authorized stay ends, whichever is shorter | Options narrow quickly after it ends | USCIS |
| Save records and line up references | Before your company accounts close | You'll need pay records for benefits and contacts for references | Common practice |
Day 1: what to do, and what to wait on
The first day is usually a short call, an email and a loss of system access. A few things are worth doing right away:
- Write down the facts while they're fresh: your official last day, how long you'll be paid, the severance terms you were told, and who your HR contact is.
- Save personal records you're entitled to: recent pay stubs, your offer letter, benefits enrollment confirmations, the layoff letter and your personal contact list. Don't download company code, customer data or confidential documents.
- Get personal contact details for colleagues and managers you'd like as references, before you lose access to work chat.
Things to wait on: signing the release, posting about the layoff publicly, and cashing out retirement money. All three are hard to undo.
Questions to ask HR before you sign anything
Send these in one polite email so you have the answers in writing:
- What is my official separation date, and through what date will I be paid?
- When will I receive my final paycheck, and is unused vacation paid out?
- When does my health coverage end, and when will I receive the COBRA election notice?
- Is severance paid as a lump sum or as salary continuation, and when?
- What happens to unvested stock or RSUs, and how long do I have to exercise vested options?
- Is any bonus, commission or sign-on repayment affected?
- How will the company confirm my employment to future employers (dates and title only, or more)?
If something in the release worries you, our severance negotiation tips cover what people commonly ask for and when to get a lawyer.
Should I choose COBRA or a Marketplace plan?
Both are options, and the right one depends on cost and your doctors. The key facts, from the Department of Labor COBRA FAQs and HealthCare.gov as of October 2026:
- COBRA keeps you on your employer's plan. It generally applies to private employers with 20 or more employees, lasts up to 18 months after a job ends, and can cost up to 102% of the plan's full premium, because the employer usually stops paying its share. You have 60 days to elect it and 45 days after electing to make the first payment. Coverage is retroactive to the day your job-based plan ended. Many states have "mini-COBRA" laws for smaller employers.
- A Marketplace plan may be cheaper if your household income qualifies for savings. Losing job-based coverage opens a 60-day Special Enrollment Period, even if you're offered COBRA.
- Watch one trap: according to HealthCare.gov, voluntarily dropping COBRA outside Open Enrollment doesn't qualify you for a Special Enrollment Period. Open Enrollment for 2027 coverage runs November 1, 2026 to January 15, 2027.
Practical approach: get a Marketplace quote within the first week, compare it with the COBRA cost in your election notice, and decide before the 60-day windows close.
When should I file for unemployment after a layoff?
As soon as possible. The Department of Labor describes unemployment insurance as a joint state-federal program for workers who are unemployed through no fault of their own; each state sets its own eligibility rules, benefit amounts and filing process. You generally file with the state where you worked, and your current state's agency can explain how to file if you worked somewhere else. CareerOneStop, sponsored by the Department of Labor, has an Unemployment Benefits Finder that links to each state's official site.
- Filing with your state is free. Ignore any message asking you to pay to file.
- Some states have a one-week waiting period, and the first payment often arrives two to three weeks after you file.
- Whether severance or vacation payout affects your benefits depends on your state. Report it as asked and let the agency decide.
- Most states require you to keep certifying and to show work-search activity. Note the requirements on day one.
What happens to my 401(k) and stock after a layoff?
Your vested 401(k) balance is yours. You usually don't have to do anything this week, and the most expensive mistake is acting in a hurry. Facts from the IRS rollover page as of October 2026:
- Direct rollover to an IRA or a new employer's plan: no tax is withheld.
- Paid to you: the plan generally withholds 20%, and you have 60 days to roll it over. Any amount not rolled over is generally taxable and may face a 10% additional tax if you're under 59½.
- Age 55 exception: the IRS says that 10% additional tax doesn't apply to distributions from an employer plan if you leave your job during or after the year you turn 55 (it doesn't apply to IRAs).
- Outstanding 401(k) loan: if the loan is offset because you left your job, the IRS treats a qualifying "plan loan offset" as rollover-eligible until your tax return due date, including extensions. Ask your plan administrator what happens to your loan.
Stock and RSUs: what happens to unvested shares depends entirely on your grant agreement and any severance terms, so ask HR in writing. For vested stock options, find the post-termination exercise deadline in your option agreement. For incentive stock options (ISOs), IRS Publication 525 ties ISO tax treatment to having been an employee until 3 months before you exercise. A tax professional can help if the numbers are large.
Days 4 to 7: references, LinkedIn and your story
Once the deadline items are handled, use the rest of the week to set up the search:
- References: message two or three former managers or senior colleagues now, while your work is fresh in their minds. Ask whether they'd be comfortable being a reference and what they'd highlight.
- Your story: write a two-sentence explanation of the layoff: the fact, a scope marker if true (a whole team, a share of the company), and what you want next. The hub above links a full guide.
- LinkedIn: update your headline and decide whether to show Open to Work publicly or to recruiters only. See Open to Work after a layoff.
- Visa holders: if your status depends on your job, read what to do if you're laid off on an H-1B and contact an immigration attorney this week.
- Practice once: do one short spoken practice session so the first real screen isn't the first time you've answered questions in months. The browser-based AI mock interview needs nothing installed.
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Should I sign my severance agreement right away?
Usually not. Take the review time the agreement gives you, read what claims you're releasing, and ask questions in writing. If you're 40 or older and the agreement waives age-discrimination claims, federal law generally gives you at least 21 days to consider it, or 45 days in a group layoff, and 7 days to revoke after signing.
How long do I have to elect COBRA after a layoff?
At least 60 days, counted from the later of when your coverage ends or when you receive the election notice. After you elect, you have 45 days to make the first payment, and coverage is retroactive to the day your job-based plan ended.
Can I get a Marketplace plan instead of COBRA?
Yes. Losing job-based coverage opens a 60-day Special Enrollment Period on HealthCare.gov, even if you're offered COBRA. Be careful about dropping COBRA later, because voluntarily ending it outside Open Enrollment doesn't open a new Special Enrollment Period.
When will I get my final paycheck after a layoff?
It depends on your state. Federal law doesn't require employers to pay the final paycheck immediately, but some states do. If the regular payday passes without payment, contact your state labor department or the federal Wage and Hour Division.
Should I cash out my 401(k) after being laid off?
Think carefully first. A distribution paid to you generally has 20% withheld, and any amount you don't roll over within 60 days is usually taxable and may face a 10% additional tax if you're under 59 and a half, with some exceptions such as leaving your job in or after the year you turn 55.
What should I ask HR after a layoff?
Ask for your official separation date, final pay timing and vacation payout, when health coverage ends, how and when severance is paid, what happens to unvested stock and option exercise deadlines, and how the company will confirm your employment to future employers. Ask in one email so you have the answers in writing.