What to Do When You Are Fired or Laid Off: A Complete Guide to the Benefits and Legal Rights You Need to Know to Get Back on Your Feet

WHAT TO DO WHEN YOU

ARE FIRED OR LAID OFF:

A Complete Guide to the Benefits and

Legal Rights You Need to Know to Get

Back on Your Feet

By PK Fontana

WHAT TO DO WHEN YOU ARE FIRED OR LAID OFF: A COMPLETE GUIDE TO THE BENEFITS AND LEGAL RIGHTS YOU NEED TO KNOW TO GET BACK ON YOUR FEET

Copyright © 2010 Atlantic Publishing Group, Inc.

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Library of Congress Cataloging-in-Publication Data

Fontana, P. K.

What to do when you are fired or laid off : a complete guide to the benefits and legal rights you need to know to get back on your feet / by P.K. Fontana.

p. cm.

Includes bibliographical references and index.

ISBN-13: 978-1-60138-287-0 (alk. paper)

ISBN-10: 1-60138-287-1 (alk. paper)

1. Employees--Dismissal of--Law and legislation--United States--Popular works. I. Title.

KF3471.F665 2009

344.7301′2596--dc22

2009037951

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We wanted you to know that a portion of the profits of this book will be donated to The Humane Society of the United States. –Douglas & Sherri Brown

The human-animal bond is as old as human history. We cherish our animal companions for their unconditional affection and acceptance. We feel a thrill when we glimpse wild creatures in their natural habitat or in our own backyard.

Unfortunately, the human-animal bond has at times been weakened. Humans have exploited some animal species to the point of extinction.

The Humane Society of the United States makes a difference in the lives of animals here at home and worldwide. The HSUS is dedicated to creating a world where our relationship with animals is guided by compassion. We seek a truly humane society in which animals are respected for their intrinsic value, and where the human-animal bond is strong.

Want to help animals? We have plenty of suggestions. Adopt a pet from a local shelter, join The Humane Society and be a part of our work to help companion animals and wildlife. You will be funding our educational, legislative, investigative and outreach projects in the U.S. and across the globe.

Or perhaps you’d like to make a memorial donation in honor of a pet, friend or relative? You can through our Kindred Spirits program. And if you’d like to contribute in a more structured way, our Planned Giving Office has suggestions about estate planning, annuities, and even gifts of stock that avoid capital gains taxes.

Maybe you have land that you would like to preserve as a lasting habitat for wildlife. Our Wildlife Land Trust can help you. Perhaps the land you want to share is a backyard—that’s enough. Our Urban Wildlife Sanctuary Program will show you how to create a habitat for your wild neighbors.

So you see, it’s easy to help animals. And The HSUS is here to help.

2100 L Street NW • Washington, DC 20037 • 202-452-1100

www.hsus.org

DEDICATION

My work is dedicated to Fred, Rudy, and Katie, who continue to support me, encourage me, and, most importantly, love me — no matter what. Also, to Clara and J.E., who truly meant it when they told me I could be whatever I wanted to be when I grew up!

TABLE OF CONTENTS

Foreword

Introduction

Chapter 1: Before You Become Unemployed

Prepare Yourself Financially

Investigate Other Possibilities

Prepare Yourself Legally

Chapter 2: What are your Rights, Benefits, and Obligations?

Unemployment Insurance

Living Assistance

Notification — The WARN Act

Health Insurance — COBRA

Trade Act

Job Search Assistance

One-Stop Career Centers

Severance Pay

Other Components of the Severance Package

Timing of Payment

What Are Your Options?

Types of Unemployment

Chapter 3: Reduction in Force (RIF)

Reduction in Force

Layoff/Restructuring

Temporary Layoffs/Furloughs

Your Rights and Resources

Temporary Furlough

Permanent Layoff

Your Employer’s Obligations

Chapter 4: Closing/Bankruptcy

Business Closing/Bankruptcy

Your Rights and Resources

Your Employer’s Obligations

Chapter 5: Firing

Firing

Firing with Cause

Firing without Cause

Wrongful Discharge

Illegal Discrimination

Your Rights

Your Employer’s Obligations

An Employer’s Obligations in a Termination with Cause

Sample Letter of Understanding

An Employer’s Obligations in a Termination Without Cause

Chapter 6: Have You Been Fired Illegally?

Can You Sue Your Former Employer?

Employees Under Contract

Union Workers

Government Workers

Whistleblowers

Public Policy

Chapter 7: Considerations for a Lawsuit

Employment Contracts

Improper Notice Under the WARN Act

Discrimination

Filing an Equal Employment Opportunity Commission Complaint

The Process of Challenging a Termination

Deciding on a Settlement

Chapter 8: Working with an Attorney to Challenge a Termination

How to Find the Right Attorney

Questions to Ask Before Hiring an Attorney

What You Need to Provide Your Attorney

Chapter 9: Surviving Unemployment

Getting Help

Health Insurance

Mortgage Assistance

Assistance with Utilities

Food Stamps

Assistance with Debts

Coping Emotionally and Physically

Chapter 10: Budgeting

Analyzing Your Monthly Expenses

Analyzing Your Monthly Income

Reducing Expenses

Chapter 11: Generating Additional Income

Home Equity Lines of Credit

Part-Time or Temporary Work

Monthly Budget

Handling Your Taxes

Chapter 12: Networking, Support Groups, and Other Resources

Networking

Support Groups

Training Resources

Workforce Investment Act (WIA)

One-Stop Career Centers

Community Colleges

Chapter 13: The Job Hunt

Essential Elements of an Effective Job Search

Using an Employment Agency

Types of Employment Service Firms

Protecting Yourself

Print and Internet Ads

Job Fairs

Create Your Own Job

Chapter 14: Résumés and Cover Letters

The Biggest Mistakes of All

Résumé Styles

Chronological

Functional

Targeted

Creative

Web Résumés

Sample Chronological Résumé

Sample Functional Résumé

Sample Targeted Résumé

Writing the Cover Letter

Types of Cover Letters

The Solicited Response

Letters to a Recruitment Agency

Cold-Call Letters

Online Cover Letters

Writing a Cover Letter After Being Fired or Laid Off

Sample Cover Letters

Sample Solicited Response Cover Letter

Sample Cover Letter to a Recruiter

Sample Cold-call Cover Letter

Sample Online Cover Letter

Chapter 15: The Job Interview

Preparing for an Interview

Sample Thank-you/Follow-up Letter

How to Handle your Termination in an Interview

Moving On: What Losing a Job Taught Me

Conclusion

Appendix A: Glossary

Appendix B: Federal Whistleblower Protection Laws

Appendix C: Resources by State

Breakdown of State Discrimination Laws

Dislocated Worker Assistance Centers by State

State Living Assistance Programs

State Departments of Labor

Legal Services Corporation State Offices

Equal Employment Opportunity Commission (EEOC)

State Civil Rights Offices

State Workforce Investment Act Offices

State Health Insurance Continuation Laws

LIHEAP State Grantees

OSHA Offices – To Report Whistleblower Discrimination

Small Business Administration (SBA) offices

State Rapid Response Coordinators

Appendix D: Resources

Appendix E: Bibliography

Author Biography

Index

FOREWORD

Losing a job can be one of the most stressful experiences a person can go through. Modern-day employees likely work half their waking hours, so a job is a large part of most people’s lives. A natural reaction to job loss or even potential job loss is shock, thus many people fail to take steps quickly to protect their and their family’s rights after termination — many do not know their rights and obligations. In this economy, every worker needs to know exactly what to do from the moment he or she is presented with a termination letter or severance package. That is why I am glad PK Fontana wrote her book, What to Do When You are Fired or Laid Off: A Complete Guide to the Benefits and Legal Rights You Need to Know to Get Back on Your Feet.

In this book, Fontana explains your rights and much more. She takes you by the hand gently, like an experienced friend or personal career counselor, and tells you exactly what to do from the moment you begin to think your job might end. She even advises you about the signs to look for to determine if your job is at risk.

If you choose to read this book before you are fired, you will learn exactly what to do to prepare yourself financially and legally before it is too late. If you have already been fired or laid off, you should have this book as your constant companion to wend your way through the financial minefields of benefits, government assistance, budgeting, and debts.

Once you have secured yourself financially, it is time to move on — and Fontana tells you how. Think you might have legal claims? She explains if and how to find a lawyer, what questions to ask, and discusses some of the potential claims you might explore with your attorney. Has it been a while since you were in the job market? You will receive advice on how to network, train, conduct your job search, and interview.

Some of my favorite parts of this book are the case studies in each chapter. Real people who have been right where you are share what happened to them, what they did, and how it worked out. These practical and true-to-life examples show a reader how others dealt with their own job dilemmas.

As a lawyer who has practiced employment law in Florida for more than 20 years, I have clients come to me to negotiate their severance packages, to get advice about non-compete agreements and employment contracts, to discuss discrimination or whistleblower suits, and to defend against suits by former employers. But my clients also need practical advice. This book is just what they need. It goes beyond legal advice, to the day-to-day matters every unemployed person must confront.

As the author of The Writer’s Guide to the Courtroom: Let’s Quill All the Lawyers, I know about good, clean writing. This book is written in plain English, so even the most stunned ex-employee can understand what he or she needs to do each step of the way.

By reading this book, you are taking the first step toward moving past the dreaded job loss and onto a new — maybe even better — stage in life. Good luck with your job search.

Donna M. Ballman, J.D.

President, Donna M. Ballman, P.A.

About Donna Ballman

Donna Ballman has been practicing law for more than 20 years, focusing primarily on representing employees and former employees. Her practice in employment law has been recognized by having been named one of the Top 500 Plaintiff’s Attorneys in the U.S. by Lawdragon based upon peer ratings, a Leading Florida Attorney and Leading American Attorney by American Research Group based upon a survey of attorneys, and a Top South Florida Attorney by South Florida Legal Guide based on a survey of South Florida attorneys. She was featured on the Forbes Channel’s America’s Most Influential Women program on the topic of severance negotiations and non-compete agreements. She wrote Behler Publications’ The Writer’s Guide to the Courtroom: Let’s Quill All the Lawyers, a book that informs novelists and screenwriters about the ins and outs of the civil justice system, as part of its award-winning Get It Write series. She has also served on James Publishing’s Editorial Advisory Board.

She has taught numerous CLEs and other seminars for organizations such as the National Employment Lawyers Association, Sterling Education Services, Lorman Education Services, Alison Seminars, the Florida Association for Women Lawyers, and community organizations. Ms. Ballman has published articles on employment law topics such as severance, non-compete agreements, discrimination, sexual harassment, and avoiding litigation.

Donna M. Ballman, P.A., can be found at www.ballmanfirm.com. The firm focuses on:

Employment discrimination: sexual discrimination, sexual harassment, disability, race, religious, national origin, color, pregnancy, sexual orientation, marital status and age discrimination claims, representation before EEOC, Florida Commission on Human Relations, and county Equal Opportunity Boards.

Negotiation of severance agreements: handling all aspects of severance agreement negotiations.

Employment litigation: whistleblower, non-compete, Family and Medical Leave Act, discrimination, advice, and litigation.

Non-compete agreements: advice regarding non-compete agreements; defense of non-compete enforcement suits and arbitrations; litigation to seek ruling from court on enforceability of non-compete agreements.

Alternate dispute resolution: Florida Supreme Court-certified circuit civil mediator; arbitrator for employment disputes.

Table of Contents

INTRODUCTION

The business world is always changing. Giant corporations are bought and sold, and are even being supported by the federal government. Words like bailout, rescue package, and stimulus plan are now part of our everyday conversation. News of bankruptcies and layoffs cover the front pages of news Web sites and newspapers daily. Unemployment insurance is being upgraded and Employment Security Commissions (ESCs) are overwhelmed with the changes as well as with the number of new applicants each week. Job fairs entice hundreds — sometimes thousands — of applicants for relatively few available positions.

If you are among the newly unemployed, or you recognize the signs within your own organization that you may be laid off soon, you are not alone. Millions are facing similar situations. Unemployment across the U.S. reached a rate of 8.1 percent, or 12.5 million people, in February 2009, the highest since the early 1980s. But you are taking the right first step by reading this book. Here you will find information about your rights and your employer’s obligations, as well as advice on where to turn for help, how to get back on your feet and start your job search again, and how to survive unemployment — financially and emotionally. The chapters will cover the many resources available to you through government agencies, non-profit organizations, and private support groups.

This book provides a simple outline of the types of unemployment and what each means to you in terms of rights, benefits, and obligations. The chapters are broken down into easy-to-follow sections beginning with preparing for unemployment, then guiding you through the various types of unemployment and the rights and obligations associated with each. There are helpful sections included on surviving unemployment and looking for your next job. Each chapter concludes with case studies from people who have been there before and experts who can help you along the way. The appendices break down laws by state, provide a glossary of commonly used terms, and give you further resources to investigate on your own.

The world of work is constantly changing. The time when a person could retire from the same company he or she started working for as a teenager has all but passed. The findings of the U.S. Department of Labor prove this fact by monitoring employment trends. Its Bureau of Labor Statistics looks at current unemployment rates and studies patterns over many years. Below are some of their findings:

• People hold about ten jobs in their lifetimes (though this estimate is based on limited studies).

• People experience unemployment almost five times during their working years. The better educated people are, the fewer times they are unemployed.

• The agency projects that in 2016, many older persons will be employed. Service-related jobs will continue to be important areas of employment.

Of course, when you are facing unemployment, these statistics will not offer much comfort. When you lose a job, you lose your health benefits and your income. It is natural to worry about how your family will overcome these detrimental circumstances. You may wonder how you will pay your mortgage, car, and credit card bills; how to put food on the table; and how to tell your children that Santa may not be coming this year. You may experience strong emotions: sadness, anger, frustration, hopelessness, and anxiety. These feelings can affect your health and your relationships with other people; they can make it difficult to find the energy and strength to get your life back together.

As you read through the information provided here, you will see that there are many options available to you, in your community as well as on a state and federal level. Resources abound for assistance with daily living expenses, utilities, and food. You can also receive help with finding a new job or creating your own job by starting your own business. Case studies at the end of each chapter feature expert advice and advice from people who have gone through this situation before.

Some people say that being terminated was the greatest favor they ever received. There is a brighter day ahead for you, and this book will help you find it.

Table of Contents

CHAPTER 1

Before You Become Unemployed

Losing a job does not typically come as a surprise to an employee, whether the loss is through a layoff or a firing. While you are still employed, watch for signs and do your homework. If your company is restructuring or making moves for budget reasons, such as cutting back on workers’ hours or not paying their bills on time, the next step could be a layoff — or even a closing. Likewise, if you are receiving unfavorable feedback on your work performance or sensing that your supervisors are heading in a different direction, you may be in line for a dismissal.

You can be prepared for unemployment. This chapter will provide an overview of steps to take while you are still employed, such as increasing your savings and, of course, reading this book and other research materials to ensure you know your rights and your employer’s obligations.

Watch for Signs

In challenging economic times, news of financial problems in the business world is splashed across Web sites, television news, and daily newspapers. These resources can prove to be insightful for employees. By checking these sources, an employee of a struggling company can learn about the financial issues facing their employer. Keep up with the circumstances of the company you work with.

Pay attention to internal signs as well. Companies that are not doing well financially tend to increase the time they take to pay vendors — and sometimes do not pay them at all. Your amenities may be cut back. Pay heed if the company has canceled the annual picnic, if you are being charged for the once-free coffee in the break room, or if office supplies require more scrutiny and several layers of approval. Pay attention to keywords such as tightening the budget and streamlining. These buzzwords usually mean cutbacks and, potentially, layoffs.

Your company may be searching for a buyer or partner. While this type of financial arrangement may be beneficial to the company as a whole, it does not mean that layoffs have been avoided. The new company may decide to consolidate staff or reduce overhead to make the combined venture more profitable. If your company is on the verge of a buyout or a merger, prepare for a change or work to make yourself invaluable to the organization. Often, though, even the most worthy of employees are laid off when the new owners review the financial statements and decide they need to reduce expenses.

Signs that you may be in line to be fired include the obvious, such as poor performance reviews,