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.
Related: COBRA hubCOBRA vs Marketplace

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.
Related: Severance review topicsHR conversation prep

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.
Related: Severance review topics

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.
Related: Severance review topics

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.
Related: Severance review topics

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.
Related: Severance review topics

Non-disparagement#

A clause restricting what you can publicly say about the employer after you leave.

Why it matters: Often mutual in form but one-sided in practice; may limit honest references or reviews.
Document to check: Severance agreement.
Question to ask: Is the clause mutual? Are there carve-outs for legally protected disclosures?
Who to consult: Employment lawyer.
Related: Severance review topics

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.
Related: HR conversation prep

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.
Related: HR conversation prep

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.
Related: Unemployment prep

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.
Related: COBRA vs Marketplace

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. See /warn-act for a plain-English guide.

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.
Related: WARN Act guide

State mini-WARN#

State-level laws (e.g., California, New York, New Jersey, Illinois) that can require more notice or apply to smaller layoffs than the federal WARN Act.

Why it matters: Triggers may be lower than federal; pay-in-lieu rules vary.
Document to check: Any WARN-style notice received; your state's labor agency page.
Question to ask: Does my state have a mini-WARN, and did this layoff trigger it?
Who to consult: Employment lawyer; state labor agency.
Related: WARN Act guide

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.
Related: Layoff help services compared

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.
Related: RSUs & stock options after layoff

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.
Related: RSUs & stock options after layoff

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.
Related: RSUs & stock options after layoff

Post-termination exercise window#

The period after your last day during which you can still exercise vested stock options. Often as short as 90 days.

Why it matters: Miss the window and vested options are forfeited.
Document to check: Option grant; equity plan documents.
Question to ask: What is my exact exercise deadline, and how do I pay the exercise price and taxes?
Who to consult: Tax advisor; equity counsel.
Related: RSUs & stock options after layoff

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.
Related: Unemployment prep

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.
Related: Unemployment prep

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.
Related: COBRA vs Marketplace

I-94#

Arrival/departure record that shows your admission class and authorized period of stay in the U.S.

Why it matters: Defines your lawful status dates; critical after a layoff.
Document to check: Most recent I-94 from CBP's I-94 website.
Question to ask: What is my current admission class and 'admit until' date?
Who to consult: Licensed immigration attorney.
Related: Work visa layoff hub

I-797#

USCIS approval notice (for example, for an H-1B, L-1, O-1, or EAD petition).

Why it matters: Confirms petition validity dates that your status may depend on.
Document to check: Original I-797 approval notice(s).
Question to ask: What are my petition validity dates, and do I have any pending amendments or extensions?
Who to consult: Licensed immigration attorney.
Related: Work visa layoff hub

EAD#

Employment Authorization Document — a card that permits work in the U.S. for a defined period and category.

Why it matters: Validity, category, and renewal timing affect whether you can keep working.
Document to check: EAD card (front and back).
Question to ask: What is my EAD category and expiration, and what are my renewal options?
Who to consult: Licensed immigration attorney.
Related: Work visa layoff hub

F-1 OPT#

Optional Practical Training — temporary work authorization for F-1 students related to their field of study.

Why it matters: Unemployment limits apply; gaps can jeopardize status.
Document to check: EAD card; I-20 with OPT recommendation.
Question to ask: How many unemployment days have I used, and what are my options before the limit?
Who to consult: DSO at your school; licensed immigration attorney.
Related: Work visa layoff hub

STEM OPT#

A 24-month extension of F-1 OPT for eligible STEM graduates working for E-Verify employers.

Why it matters: Reporting and employer requirements are strict; layoffs can affect eligibility.
Document to check: EAD card; I-20 with STEM OPT recommendation; Form I-983 training plan.
Question to ask: What are my reporting obligations and timelines after losing this job?
Who to consult: DSO at your school; licensed immigration attorney.
Related: Work visa layoff hub

References

Definitions in this glossary reference materials published by the U.S. Department of Labor (severance, COBRA, WARN Act, final pay), the U.S. Equal Employment Opportunity Commission (releases of age-discrimination claims), HealthCare.gov (Special Enrollment Periods), and U.S. Citizenship and Immigration Services (nonimmigrant status and grace periods). State-specific rules for final paychecks, PTO payout, and unemployment are administered by each state's labor or workforce agency. This page is educational and does not give legal, immigration, tax, benefits, insurance, or unemployment-eligibility advice.

Laid Off in America provides general educational planning support only. It does not provide legal, immigration, financial, tax, employment, insurance, or benefits advice. Consult qualified professionals before signing agreements, changing benefits, making immigration decisions, filing claims, or making financial commitments.