Laid off? Your first 48 hours, step by step

The meeting was short. Someone from HR was on the call and someone you didn’t recognize. They said “position eliminated” and “last day.” You said thank you, which you’ll replay in your head for a week.

Now you’re sitting in your car, or at your kitchen table, and the next hours feel enormous. This guide is for that moment. It’s written for California, and it’s for you, not for the company.

I work both sides of this. I advise employers on how to run a layoff properly, so I know what a good one looks like and what a bad one hides. Here’s what to do first, in order.

1. Don’t sign anything today

You’ll probably be handed a separation agreement, sometimes with a “sign by Friday” note. Take it. Don’t sign it in the room.

California law requires an agreement that releases claims to tell you that you have the right to consult a lawyer and give you at least five business days to do it. If you’re 40 or older, federal law usually gives you longer. Use that time, because severance is negotiable far more often than people assume. My guide to severance and termination paperwork covers what to read before you sign.

2. Check that your final pay is right

When you’re let go, California requires your final wages, including accrued vacation, to be paid right away. The Labor Commissioner’s guidance says a discharged employee must be paid all wages, including accrued vacation, under Labor Code sections 201 and 227.3. If the company willfully doesn’t pay on time, you can be owed a penalty equal to your daily pay for each day late, capped at 30 days. There’s no penalty if there’s a good-faith dispute about the amount, but wages that aren’t in dispute still have to be paid.

Check the stub against your hours, your unused vacation balance and any commissions or bonuses you’ve already earned. If something’s off, ask in writing. I explain the rules in final paychecks and waiting-time penalties.

3. File for unemployment today

This is the one with a clock on it. The EDD says you can apply as soon as you have your information ready, and that it takes about three weeks to process your application and issue the first payment. Weekly benefits range from $40 to $450 depending on your earnings over the past 18 months, and you have to look for work each week and be available and ready to accept it.

The three-week wait is the reason to move now. There’s also no penalty for applying and being found ineligible, so if you’re unsure whether you qualify, file anyway. If you’re offered severance, ask the EDD how to report it on your claim. If a relocation is why, see should you move with the company.

4. Sort out health insurance, but don’t panic

This is where people overpay. You have two main paths and about two months to compare them.

COBRA keeps you on your old plan. According to the Department of Labor’s guidance, you have 60 days to elect coverage, 45 days after electing to pay the first premium, and coverage is retroactive to the day you lost your plan. You pay the whole premium, your share plus the employer’s, plus 2%. For a layoff, coverage generally lasts up to 18 months. Open enrollment is when to compare plans, see what to check when health plan costs rise.

Covered California is the other route. Losing job-based coverage opens a special enrollment period of 60 days from the date you lose coverage, and coverage starts on the first day of the month after you pick a plan. With your income down, you may qualify for help with premiums, so get a quote before you assume COBRA is your only option. A coach can help structure the next move, see executive coaching.

Don’t leave yourself uncovered. If you have a procedure or an ongoing prescription, check your plan’s end date today.

5. Secure your records

While you still have access, save what belongs to you: pay stubs, your offer letter, performance reviews, written praise, your benefits summary and the dates and details of anything you’d want to remember. Don’t take confidential company files. Take your own history.

You can also ask in writing for your personnel and payroll records. I mapped out the steps in my piece on quiet cutting, and the same request applies here.

6. Ask whether this was a mass layoff

If your employer let go of a large group at once, California’s WARN Act may have required advance notice, and a missed notice can mean back pay. The details turn on the size of the company and the layoff, so read how California WARN works and ask HR directly whether notice was required.

What not to do

Don’t badmouth anyone on social media this week. Don’t take the first offer from a recruiter out of fear. Don’t assume this says anything about your worth. About 1.6 million workers were laid off or discharged in August alone, according to the Bureau of Labor Statistics. You’re not alone in this, and you can get through it.

If you want someone to read the agreement with you before you decide, book a free 20-minute conversation and bring the paperwork. I’ll tell you what I’d ask for.

Data current as of September 2026. Sources are linked where each figure appears.

McKinley holds a J.D. but is not a licensed attorney. Articles here are general information, not legal advice. For your specific situation, talk with an employment attorney.