The call ends. Your laptop goes dark. Your badge stops working. And if this is an H1B layoff, every financial question you’ve pushed off to “someday” is suddenly due at once.
You don’t have to figure all of this out right now. Here’s what to do in order.
This checklist is built for Korean immigrants navigating a U.S. layoff — especially those on H1B status, where the clock starts ticking immediately. Work through it section by section. You won’t do everything in one sitting, and you don’t need to. But the sequence matters.
Hour 1–24: Get Everything in Writing First
Before you think about insurance, your 401k, or your next job, do this.
1. Request your termination notice in writing. If the company sent a calendar invite and told you verbally, send an email confirming the details: your last day of employment, last paycheck date, and whether severance is being offered. You need a paper trail.
2. Ask for the severance agreement in writing — but do not sign it yet. Under federal law (ADEA), workers 40 and older have 21 days to review a severance agreement and 7 days to revoke after signing. Workers under 40 still have meaningful time. Companies often create urgency that isn’t legally required.
3. Back up what’s yours before losing access. While you still have your work laptop or email access, forward any personal documents — performance reviews, offer letters, pay stubs, W-2s — to your personal email. Do not copy company intellectual property. Just your own employment records.
4. Write down your last day and your last paycheck date. These anchor every deadline that follows.
Health Insurance After an H1B Layoff: You Have 60 Days
Your employer coverage typically ends on your last day of work (some extend to end of month — confirm with HR), and you have 60 days from that point to elect COBRA. You don’t have to decide immediately: COBRA is retroactive, so you can wait and still be covered for anything that happens in the gap.
For the full comparison — COBRA cost, the ACA Marketplace Special Enrollment Period, joining a spouse’s plan, and short-term bridge options — see the dedicated H1B insurance gap breakdown; picking the right option over COBRA by default can save $400–$1,200/month.
Actionable takeaway: Don’t default to COBRA on day one. Confirm your coverage end date with HR, then compare it against Marketplace SEP pricing before deciding.
The H1B Layoff Grace Period: 60 Days Is a Hard Deadline
After an H1B layoff, this section is the most time-sensitive thing in this entire post.
1. You have a 60-day grace period from your last day of employment. This is not a suggestion. It is a regulatory deadline set by USCIS. Overstaying it means you are out of status.
2. Within those 60 days, you must do one of three things: – Find a new employer willing to file an H1B transfer (the cap-exempt transfer can be filed while you’re in the grace period) – Change to another visa status (F-1, H-4, B-1/B-2, O-1) – Leave the United States
3. Contact an immigration attorney on day one if possible. Not week three. Day one. A 30-minute consultation can clarify your options and prevent a status violation that would affect future visa applications. Many attorneys offer free or low-cost initial consultations.
4. Do not count on HR to give you accurate immigration guidance. HR knows employment law; they may not know immigration law. Get independent advice.
5. Keep your pay stubs and employment authorization records organized. If you file for a status change, you’ll need documentation of your valid employment period.
Your 401k: Do Nothing Hasty
The worst financial decision most people make after a layoff is touching their 401k in a panic. Here is what you need to know.
1. You are not required to move your 401k immediately. Most plans allow you to leave the funds in place even after leaving an employer, as long as the balance is above $5,000. You have time.
2. Your rollover options: – Leave it in the existing plan (simplest, but you lose the ability to contribute) – Roll it to a new employer’s 401k once you start a new job – Roll it to a Traditional IRA (direct rollover — preferred method)
3. If you take a distribution (a check made out to you), you have 60 days to deposit it into another qualified account before it becomes taxable income and potentially subject to a 10% early withdrawal penalty.
4. Do not do a hasty early withdrawal. On a $50,000 balance, an early withdrawal could cost you $15,000–$20,000 in taxes and penalties. That money is far more valuable staying invested.
5. If your company offered an employer match, check your vesting schedule. Unvested employer contributions typically go back to the company at termination. Confirm the vested amount before assuming your full balance is yours.
Severance: Read It Before You Sign It
Severance agreements exist because companies want something in exchange for the payment — usually a release of legal claims. You have the right to negotiate.
1. Read the full agreement, not just the payment section. Look specifically for: – Non-compete clauses — how long, which industries, which geography – Non-disparagement clauses — restrictions on what you can say about the company – RSU or equity vesting — does the agreement accelerate any unvested shares? – COBRA continuation payment — some companies cover 1–3 months; it’s worth asking – Reference letter language — get something in writing, even if just a title/dates confirmation
2. You can negotiate. Counter-offers on severance are common. Even extending the payout period by one or two weeks, getting COBRA covered for a month, or removing a non-compete from a future-employer state can save you thousands.
3. If you’re over 40, the 21-day review period is your legal right. The company cannot legally make you sign faster. If they pressure you, that itself is worth noting.
4. Consider having an employment attorney review the agreement if the compensation is significant (above $15,000–$20,000) or if the non-compete language is broad.
Unemployment Benefits After an H1B Layoff: File Early, Not Later
File the week of your last paycheck — benefits are calculated from your filing week, not your separation date, so every week you delay is a week you cannot reclaim. H1B holders with valid work authorization can generally file; eligibility comes down to your state, earnings history, and separation reason, not your visa type.
For the full eligibility rules, the immigration-case question, and the filing timeline most people get wrong, see the dedicated H1B unemployment benefits guide.
Actionable takeaway: Don’t delay because you’re unsure about eligibility. File first — the state makes the determination, and a denial can be appealed.
The 48-Hour Financial Reset
Beyond the legal and administrative steps, take 30 minutes in the first 48 hours to reset your financial baseline.
1. Calculate your actual monthly burn rate. Add up rent/mortgage, insurance, groceries, utilities, loan minimums. This is your true monthly floor.
2. Divide your liquid savings by that number. This is your runway in months. Knowing this number — even if it’s uncomfortable — is better than not knowing. If your runway is thin, our emergency fund guide covers how to rebuild it once income returns.
3. Pause non-essential subscriptions immediately. Streaming services, meal kits, gym memberships. Most can be restarted. Cutting $200–$400/month in subscriptions extends your runway meaningfully.
4. Contact your mortgage servicer or landlord proactively. Most have hardship programs that can defer a payment or temporarily reduce it. Calling before you miss a payment gives you far more options than calling after.
5. Do not make major financial moves in the first 48 hours. Selling investments, withdrawing retirement funds, and taking out a personal loan can all wait. Get the information first. Decide later.
FAQ
Can I freelance during the 60-day grace period after an H1B layoff?
No. The 60-day grace period maintains your H1B status temporarily but does not grant you work authorization. Working without authorization during this period is a serious immigration violation. If you need income options, consult an immigration attorney about changing to a status that allows self-employment.
My employer wants the laptop back in 24 hours. Can I forward my personal files first?
Yes — forward your own employment records (offer letters, pay stubs, performance reviews, W-2s) to your personal email before returning equipment. Do not copy company files, code, or client data. If you’re uncertain what counts as personal vs. company property, err on the side of caution.
If I elect COBRA, can I switch to a Marketplace plan later?
Enrolling in COBRA does not prevent you from switching to a Marketplace plan at the next Open Enrollment period (typically November 1 – January 15). You may also qualify for a Special Enrollment Period if your COBRA coverage lapses, but the rules are specific. Do not assume you can switch at any time — verify your state’s rules.
The company says I must sign the severance offer by Friday. Is that legal?
For workers under 40, companies can set reasonable deadlines. For workers 40 and older, the ADEA legally guarantees 21 days to review a severance agreement that includes a waiver of age discrimination claims. If you’re over 40 and being pressured to sign within days, you have legal protections. Consult an employment attorney.
Quick Summary
- After an H1B layoff, the 60-day grace period is a hard legal deadline — contact an immigration attorney immediately, not when you feel ready.
- COBRA gives you 60 days to decide and is retroactive, so don’t rush into it; compare it against Marketplace plans first.
- File for unemployment the week your last paycheck arrives — delays cost you real money, and H1B holders with work authorization are generally eligible.
None of this is professional advice — just what I researched and pieced together myself. Tax and immigration rules shift often, so double-check anything that affects your actual filing with a licensed professional.