What to Do After Sudden Job Loss: Your Legal Rights

Losing a job can be devastating and overwhelming. The sudden loss of income can trigger concerns about covering rent or mortgage payments, putting food on the table, and keeping up with daily expenses. However, professional resources and networks of support can ease the situation.

This article outlines actions you should take after a sudden job loss, from collecting your final compensation to seeking legal advice.

If you're facing a sudden job loss and think you might have a legal claim, contact an employment attorney in your area. They can help you understand your legal options and protect your rights during this challenging transition.

Collect Final Compensation from Your Employer

The laws vary in every jurisdiction, and federal law does not require employers to provide employees with their final paychecks right away. However, some states may require employers to issue it immediately after termination or within a given amount of time.

For instance, in California, an employer should pay an employee discharged from work all wages due, including the accrued vacation leave, immediately after termination. If the employee quits with at least 72 hours notice, the employer should provide their final paycheck on their last day. If the employee quits without giving the 72-hour notice, the employee should receive the payment 72 hours after quitting.

In contrast, New York has a more straightforward requirement. It requires the former employer to provide the final paycheck on the regular payday for the period worked, regardless of whether the employee quit or was terminated.

File for Unemployment Compensation

To maintain your income even after you lose your job, you should try to file for unemployment benefits. In general, state law allows unemployed workers to collect their workers' compensation if:

• You lost your job through no fault of your own, such as layoff, reduction in force, or business closure
• You meet your state's requirements for wages earned or time worked during the "base period"
• You are physically capable of working and available for immediate employment
• You are in an active job search for new suitable work

Note that the amount of unemployment benefits varies significantly in every state. It often covers around 40% to 60% of your previous salary. Each state also has a set maximum amount of unemployment compensation benefits. The standard benefits in most states last for up to 26 weeks. However, extensions are available in certain scenarios.

You should file your claim immediately after losing employment to avoid delays in benefit payments. Your state's Department of Labor will ask you to provide proof of identification. They may also ask for your Social Security number, address, and employment history.

Check with the employment agency in your state to determine specific eligibility requirements for unemployment insurance.

Continue Healthcare Coverage

Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986, former employees can continue healthcare coverage for up to 18 months under the employer's plan. They can extend this period if plan participants have a disability. While the former employee must pay the full premium, this cost is usually lower than obtaining individual coverage.

The former employee will receive an election notice within 45 days of losing a job and will have 60 days to elect coverage. The initial premium must be paid within 45 days if the employee elects coverage.

While considering COBRA coverage, you might also:

• Negotiate with your healthcare providers to continue care at a lower rate than what was billed to insurance
• Explore marketplace health insurance options, which might be more affordable than COBRA in some cases

Assess for Signs of Wrongful Termination

Not all job termination is legal. Even in at-will employment, the employee can file a claim for unlawful termination. This is particularly true if the employer committed any of the following acts:

• Discrimination against the employee based on protected characteristics (race, color, national origin, sex, religion, age, disability, pregnancy)
• Retaliation against a whistleblower (reporting violations of labor law, company policy, or illegal activities)
• Breach of employment contract
• Violations of public policy
• Punishing an employee for taking legally protected leave (FMLA, jury duty, military service)
• Violation of employment contracts or collective bargaining agreements
• Refusal to commit illegal acts at the employer's request

Document all the circumstances leading to your dismissal. If you were wrongfully terminated, you may be able to recover damages or even get your job back.

Recognize Signs of Employment Discrimination

The Equal Employment Opportunity Commission (EEOC) protects employees from discrimination. If you believe your employer terminated your employment for discriminatory reasons, you may also have a valid claim.

Employment discrimination can be based on any of the following protected characteristics:

• Age
• Disability
• Pregnancy
• Sexual orientation
• Gender
• National origin

There are deadlines for filing claims under EEOC. In some states, you have 180 days to file a claim from the discriminatory acts. Meanwhile, other states allow 300 days.

To ensure you meet these deadlines, it is best to consult with an employment attorney. They can assist you with preserving your employment rights and determine if the employer’s policies and federal or state laws were violated.

Review Potential Breach of Contract Claims

If you signed an employment contract or severance agreement, review it to determine if your employer breached its terms. Your employee handbook could create an implied contractual obligation if you do not have an employment contract. The handbook could also limit the ability of the employer to terminate employment without cause.

Consider Claims for Constructive Dismissal

Assess whether your employer committed constructive dismissal. This happens when the employer intentionally makes the working conditions so unbearable for the employee that it compels them to resign. Although technically, you filed your resignation. The law may still look at this as unlawful termination.

The following are some of the circumstances that need to be present to prove a case of constructive dismissal:

• The employer had knowledge of the intolerable working conditions or intended to force you to resign
• Your working environment was unusually adverse that a reasonable employee would be forced to resign

Courts often look at the continuing pattern of conduct to provide a case of constructive dismissal. It is often necessary that you notify your management about the intolerable working conditions. You should give them the chance to correct it before you resign.

Seek Legal Advice from an Employment Attorney

Learning about your legal rights and the actions that you can take after a job loss can be overwhelming. An employment law attorney can give you legal advice particularly tailored to your specific situation. They can help you understand your legal claims and the financial protections available after you lose your job. Contact an employment lawyer to talk about your situation and evaluate potential claims.