Being part of a mass layoff can be a devastating, shocking experience. 

Employees often have questions. “Was this legal?” “Am I getting paid at all?” “Is there any recourse for me?”

This blog outlines some key rights and considerations that workers should be aware of when facing a mass layoff here in Texas.

1. The WARN Act – Advance Notice Requirements

One of the most important protections for workers affected by mass layoffs comes from the Worker Adjustment and Retraining Notification (WARN) Act. This is a federal law that requires certain employers to provide:

• At least 60 days’ advance written notice of a mass layoff 
• Generally applies to companies with 100+ employees (typically counting only those who have worked for the company for more than 6 of the last 12 months)
• Applies when 50+ employees at a single site will be laid off 

If your employer fails to provide this notice, you may be entitled to up to 60 days of back pay and benefits.

Some states have their own “Mini-WARN” laws that are stricter than the federal version (e.g., New York, California, New Jersey). Texas does not have its own version of the WARN Act.

2. Severance Pay 

There is no law that requires severance pay. However, your right to a severance may come from a company policy, employment contract, or union agreement.

Even if not required, many employers offer a severance in exchange for signing a release of claims. Consider requesting additional time to review the agreement instead of accepting right away.

Also note that if you receive severance pay, it may impact your ability to obtain unemployment benefits in Texas.

Consult an attorney if you have questions or concerns about this.

3. Health Insurance: COBRA Coverage

After termination, you may have the option to continue your group health insurance under COBRA:

• COBRA allows you to continue your existing health plan for up to 18 months
• You’ll typically pay the full premium yourself (often significantly more expensive than during employment)

Look for your COBRA notice in the mail. Don’t ignore it & don’t forget to look for it.

4. Unemployment Benefits

You may be eligible for unemployment benefits after a mass layoff. File promptly with your state unemployment office. 

Note that your Texas unemployment benefits may be delayed based on whether you are receiving pay upon your termination. 

5. Age Discrimination Protections (OWBPA)

If you are 40 or older, and your employer (with 20+ employees) asks you to sign a release of claims (e.g., in exchange for severance), the Older Workers Benefit Protection Act (OWBPA) can offer extra protections, including:

• At least 21 days to review the agreement (or 45 days in a mass layoff)
• At least 7 days to revoke it after signing
• A written agreement in plain language, not complex “legalese”

6. Discrimination or Retaliation Concerns

Even in a mass layoff, employers cannot target individuals based on protected characteristics.

If you believe you were selected unfairly, you may want to consult one of our Texas employment lawyers to discuss this further. 

7. Thoroughly Review Any Waivers or Releases

Most severance agreements include language that waives your right to sue your employer. Don’t sign without understanding:

• What rights you are giving up
• Whether the compensation offered is fair
• If you should negotiate for better terms 

This is a good time to contact an attorney to help you read through and understand what the agreement entails. Once signed, these agreements are often final.

We’re Here to Help

Mass layoffs can feel overwhelming. Knowing your rights will help you make more informed decisions. 

If you have questions about your company’s layoff, feel free to contact one of our Texas employment attorneys.