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What to Do the First Week After a Layoff

The first week has a few deadlines that matter and many decisions that can wait. Here they are in order, with the official rules. The free answer is below; the 16-page guide has the worksheets.

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  • 16-page PDF, US Letter, prints well in black and white
  • 5 fill-in worksheets, including COBRA vs Marketplace
  • Federal rules checked October 7, 2026, with sources

What to do after a layoff: the short answer

U.S. employers announced 573,195 job cuts from January through September 2026 (Challenger, Gray & Christmas), and 1.9 million people had been unemployed 27 weeks or more in September (BLS). If it happened to you, these six moves protect your income, your health coverage, and your options.

1. Day 1: get it in writing, sign nothing

Ask HR to confirm your separation date, final pay, PTO payout, severance terms and deadline, and the date health coverage ends. Save personal copies of key documents.

2. Days 1–2: file for unemployment

File in the state where you worked, even if severance is coming; benefits generally count from when you file. In most states, regular benefits last up to 26 weeks. Find your state at CareerOneStop. Benefits are taxable; you can have 10% withheld with Form W-4V.

3. Day 3: map your health coverage deadlines

Spouse plan: 30 days · COBRA: 60 days to elect, 45 more to pay · Marketplace: 60 days · Medicaid: any time

COBRA keeps your plan but can cost up to 102% of the full premium. A Marketplace plan may be cheaper with lower income. Dropping COBRA on purpose later doesn't reopen the Marketplace (DOL COBRA FAQs; HealthCare.gov).

4. Days 3–4: read the severance agreement

If you're 40 or older, a valid waiver of age claims must give you at least 21 days to consider (45 in a group layoff) and 7 days to revoke after signing (EEOC). Employers with 100+ employees generally owe 60 days' notice of a mass layoff under the WARN Act.

5. Day 5: make a 30-day money plan

List cash, final pay, and expected benefits against must-pay bills. Leave your 401(k) alone for now: early withdrawals are generally taxed plus a 10% additional tax before 59½, and checks paid to you have 20% withheld. Leaving a job in or after the year you turn 55 can avoid the 10% on that employer's plan.

6. Days 6–7: restart the search

Tell your network, ask for references while they're fresh, and set a weekly routine. American Job Centers help for free. Never pay to get a job.

General education, not legal, tax, or financial advice. Unemployment and some severance rules vary by state. Facts checked October 7, 2026.

Look inside

Guide page: the seven-day plan after a layoff
The 7-day plan, in order
Printable worksheet: exit facts in writing, from last day to health coverage end date
Worksheet 1 · Exit facts in writing
Printable worksheet: compare COBRA, a Marketplace plan, and a spouse plan
Worksheet 3 · COBRA vs Marketplace

What's inside

  • The 7-day plan: what to do each day, and what can wait
  • Worksheet 1 · Exit facts in writing: 12 things to get confirmed by HR
  • Unemployment benefits: filing, weekly certification, taxes, appeals
  • Worksheet 2 · Claim and weekly log: certifications and work-search contacts
  • Health coverage deadlines: COBRA, Marketplace, spouse plan, Medicaid, side by side
  • Worksheet 3 · COBRA vs Marketplace: premiums, deductibles, doctors, total cost
  • Severance and your rights: 21/45 days, 7 to revoke, WARN notice, what to ask
  • Worksheet 4 · Severance review: clause-by-clause checklist and questions
  • Your 401(k) and Worksheet 5 · 30-day money plan: the 10% tax, the age-55 rule, rollovers, bills
  • Restarting the search, checklists, and a summary: plus a sources page
Printable PDF guide · 16 pages
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FAQ

What should I do first after being laid off?

Get your separation details in writing and do not sign anything on the spot. Then file for unemployment in the state where you worked, and write down your health coverage deadlines.

Should I file for unemployment if I get severance?

Generally, file right away. Benefits usually count from the week you file, and your state decides whether severance delays or reduces them.

How long do I have to choose COBRA?

At least 60 days, counted from when your coverage ends or when you get the election notice, whichever is later. You then have 45 days to make the first payment, and coverage is retroactive.

Is COBRA or a Marketplace plan cheaper?

It depends. COBRA can cost up to 102% of the full premium because your employer stops paying its share. With lower income after a layoff, a Marketplace plan with premium tax credits may cost less. You have 60 days from losing coverage to pick a Marketplace plan.

How long do I have to sign a severance agreement?

It depends on the agreement. If you are 40 or older and it waives age discrimination claims, federal law requires at least 21 days to consider it (45 in a group layoff) and 7 days to revoke after signing.

Should I cash out my 401(k) after a layoff?

Think hard first. Before 59½, withdrawals are generally taxed plus a 10% additional tax unless an exception applies, and checks paid to you have 20% withheld. If you leave in or after the year you turn 55, that employer's plan avoids the 10%.

What's in the printable guide?

A 16-page PDF: a seven-day plan, unemployment, health coverage, severance, and 401(k) sections, five fill-in worksheets, day-by-day checklists, and a one-page summary.

Is this legal advice?

No. It is general education. For a severance agreement or a possible discrimination claim, consider an employment lawyer.