How to lay off employees: a checklist for employers
By Justin KullaLast updated
Before you announce
- Check whether the federal WARN Act applies: generally employers with 100 or more employees and a mass layoff or plant closing, which requires 60 days’ written notice. Some states have their own rules.
- Choose the roles by documented, job-related criteria and review the list for disparate impact.
- Decide severance, benefits continuation and the release terms, and the dates that apply.
The day
- Tell each person directly, privately and early in the day, with their manager and an HR representative present.
- Say the decision is made, give the facts and the dates, and hand over a written summary of pay, benefits and next steps.
- Tell the remaining team the same day what happened and what changes.
Support for people leaving
Point people to unemployment filing, COBRA and their state’s rapid response team, and consider outplacement. Giving a reference and a clear explanation of what you will say to future employers helps them most.
Frequently asked questions
Do I need to give 60 days’ notice of a layoff?
Under the federal WARN Act, covered employers must give 60 days’ written notice of a plant closing or mass layoff. Use the WARN Act checker to see whether yours is likely covered.
What is rapid response?
A state service that helps employers and workers when a layoff is planned. Every state has a team; see the rapid response page for yours.
Should I offer outplacement?
It is common and helps departing employees find work faster, and it can be part of the severance package.
Check whether WARN notice applies
Enter your headcount and the jobs being cut to see whether 60 days’ notice is likely required.
Open the WARN Act checker