What to Do After Being Laid Off in California

By Briana Kim, Employment Attorney | The Law Office of Briana Kim, P.C.

If you were just laid off in California, do three things first: collect your employment documents, do not sign anything on the spot, and audit your final paycheck. A layoff can be legal, but the way your employer handles your pay, your severance, and your benefits is where your rights come in; and where mistakes cost you money.

Here is what to do, step by step.

What should I do first after a layoff?

1. Collect your documents. Save your offer letter, pay stubs, commission or bonus plans, employee handbook, and any layoff or severance paperwork.
2. Do not rush the signature. You are not required to sign a severance agreement on the spot. Many agreements give you time to review (often 21 to 45 days). Use it.
3. Audit your final pay. Confirm you were paid for all time worked, plus unused commissions, earned bonuses, and expense reimbursements.

Under California Labor Code Sections 201–203, a laid-off employee’s final wages are generally due immediately at termination. If an employer willfully fails to pay on time, “waiting time” penalties of up to 30 days’ wages can apply.

Can I negotiate my severance?

Yes. Treat the first severance offer as a starting point — the terms are often negotiable. Common points to negotiate include:

• More severance pay
• Payout of unused PTO
• A benefits or COBRA-premium extension
• Positive or neutral reference language

Before you sign a severance agreement, have it reviewed. A waiver in that document can give up valuable claims, including wage violations or unlawful-termination claims, often in exchange for less than you are owed.

What about my health insurance and unemployment?

Job loss is a qualifying life event, so you have options. Schedule any pending doctor or dental visits while you are still covered, then compare COBRA against a Covered California / Healthcare.gov marketplace plan. File for unemployment right away to start the processing clock.

Was my layoff actually legal?

A layoff crosses into wrongful termination when it is a cover for something illegal. For example, targeting employees based on age, disability, pregnancy, or a protected complaint, or dodging owed wages. If your “layoff” happened right after you requested leave, reported harassment, or filed a wage complaint, that timing matters. This is worth a conversation before you sign a release.

Frequently asked questions

How long do I have to sign a severance agreement in California? It depends on the agreement. Many give you a review period (often 21 to 45 days), and federal law gives older workers extra time to consider a release. You are never required to sign immediately.

Can my employer withhold my final paycheck after a layoff? No. In California, final wages for a laid-off employee are generally due immediately, and late payment can trigger waiting-time penalties.

Should a lawyer review my severance before I sign? Yes, especially if the amount is significant or the layoff timing feels suspicious. A review is quick, and it can catch waived rights and unpaid wages before they are gone.

Talk to the Wage Recovery Queen™

Before you sign anything, get a free, confidential review of your layoff and severance. Call (714) 482-6301 or request your free consultation. We represent employees across Long Beach, La Palma, and Southern California.

This is general information, not legal advice. Consult an attorney or the U.S. Department of Labor for guidance specific to your situation.