U.S. Layoff Dictionary

Plain-English terms you may see this week.

COBRA

A federal law that may let you keep your employer health insurance for a limited time after job loss, usually at full cost plus an admin fee.

Why it matters: Coverage can lapse fast and gaps are risky.
Document to check: COBRA election notice from your benefits administrator.
Question to ask: When does my coverage end and when is the COBRA election deadline?
Who to consult: Benefits administrator; licensed health insurance broker.

Severance

Money or benefits an employer may offer in exchange for signing an agreement, often including a release of claims.

Why it matters: Once signed, terms are usually final.
Document to check: Severance agreement / separation agreement.
Question to ask: What is the deadline to sign and is anything negotiable?
Who to consult: Employment lawyer.

Release of claims

A clause where you agree not to sue the employer for specified claims.

Why it matters: Broad scope can waive significant rights.
Document to check: Severance agreement.
Question to ask: What claims am I releasing?
Who to consult: Employment lawyer.

Non-compete

A clause restricting where you can work next.

Why it matters: May affect your next income.
Document to check: Offer letter or severance.
Question to ask: What are the scope, geography, and duration?
Who to consult: Employment lawyer.

Non-solicit

Restricts contacting former clients or coworkers.

Why it matters: Can affect freelance/consulting plans.
Document to check: Severance agreement.
Question to ask: Who and how long does this apply to?
Who to consult: Employment lawyer.

Confidentiality

A duty not to share certain employer information.

Why it matters: Common and often ongoing.
Document to check: Severance agreement.
Question to ask: Are there carve-outs for protected disclosures?
Who to consult: Employment lawyer.

PTO payout

Payment for unused vacation, where required by law or policy.

Why it matters: Varies by state and policy.
Document to check: Final paycheck statement, PTO policy.
Question to ask: Will my unused PTO be paid out?
Who to consult: HR; state labor agency.

Final paycheck

Your last wage payment, sometimes due on a specific timeline by state law.

Why it matters: Late or missing pay may be a wage claim issue.
Document to check: Pay stub.
Question to ask: When and how will I receive my final pay?
Who to consult: HR; state labor agency.

Unemployment insurance

State benefit for eligible workers who lose work through no fault of their own.

Why it matters: Eligibility and amounts vary by state.
Document to check: Separation notice; state UI portal.
Question to ask: Confirm reason for separation in writing.
Who to consult: State unemployment office.

Marketplace health insurance

Plans available through HealthCare.gov or your state exchange; job loss is a qualifying event.

Why it matters: Can be cheaper than COBRA with subsidies.
Document to check: Marketplace application.
Question to ask: Do I qualify for a Special Enrollment Period?
Who to consult: Licensed broker; navigator.

401(k)

Employer-sponsored retirement plan.

Why it matters: You may roll over or leave the balance.
Document to check: Plan statement.
Question to ask: What are my rollover options?
Who to consult: Plan administrator; financial advisor.

HSA

Health Savings Account tied to a high-deductible plan.

Why it matters: Funds are yours; new contributions need an HDHP.
Document to check: HSA statement.
Question to ask: How do I keep using existing funds?
Who to consult: HSA custodian.

FSA

Flexible Spending Account; usually use-it-or-lose-it.

Why it matters: Funds may end at separation.
Document to check: FSA balance.
Question to ask: What happens to my balance at separation?
Who to consult: Benefits administrator.

WARN Act

Federal law that may require advance notice of certain mass layoffs.

Why it matters: Some states have stricter versions.
Document to check: Any WARN notice received.
Question to ask: Was a WARN notice issued?
Who to consult: Employment lawyer.

At-will employment

Employment can usually end at any time, with limited exceptions.

Why it matters: Frames most U.S. layoffs.
Document to check: Offer letter.
Question to ask: Were any policies followed?
Who to consult: Employment lawyer.

Outplacement

Career transition services sometimes offered by employers.

Why it matters: Can include coaching, resume help.
Document to check: Severance package.
Question to ask: Is outplacement included?
Who to consult: HR.

Equity vesting

When stock-based grants become yours.

Why it matters: Unvested equity may be forfeited.
Document to check: Equity grant docs.
Question to ask: What is vested as of my last day?
Who to consult: Equity admin; tax pro.

RSUs

Restricted Stock Units that vest over time.

Why it matters: Tax and timing matter.
Document to check: Grant documents.
Question to ask: What vests before separation?
Who to consult: Tax advisor.

Stock options

Right to buy shares at a set price.

Why it matters: Post-termination exercise windows are often short.
Document to check: Option grant.
Question to ask: How long do I have to exercise?
Who to consult: Tax advisor; equity counsel.

Reference policy

Some employers only confirm dates and titles.

Why it matters: Sets expectations for job seekers.
Document to check: Company policy / HR.
Question to ask: What will you confirm to references?
Who to consult: HR.

Base period

Window of past wages used to calculate UI benefits.

Why it matters: Affects benefit amount.
Document to check: State UI guide.
Question to ask: What is the base period in my state?
Who to consult: State UI office.

Weekly certification

Ongoing claim filing required to keep UI benefits.

Why it matters: Missing it stops payments.
Document to check: State UI portal.
Question to ask: What must I report each week?
Who to consult: State UI office.

Qualifying event

Life event (like job loss) that opens a special enrollment window.

Why it matters: Time-limited.
Document to check: Marketplace.
Question to ask: How long is my SEP?
Who to consult: Marketplace; broker.