O’Donnell: What you should ask your employer if layoffs are coming

I’m hearing whispers about possible layoffs at my company, and it’s making me anxious. If I do get laid off, what questions should I ask my employer to ensure I’m protecting myself and setting up for a smooth transition? — Kenny

J.T.: It’s completely understandable to feel uneasy during such uncertain times. Being proactive and prepared is the best approach. If you find yourself facing a layoff, here are five crucial questions to ask your employer to safeguard your interests and facilitate your next steps:

1. When and how will I receive my final paycheck?

Your final paycheck isn’t just about your salary — it may also include accrued vacation time or paid time off (PTO). It’s essential to clarify:

The exact date you’ll receive your final paycheck.

Whether it will be through direct deposit or a mailed check.

If your unused PTO or vacation time will be included in the payout.

Keep in mind that some states require employers to pay out unused PTO, while others don’t. Reviewing your employee handbook and state laws can provide clarity on what you’re entitled to.

2. What severance pay or outplacement services are available?

Many employees assume severance pay is standard, but that’s not always the case. Severance can help cover living expenses while you search for your next opportunity. Additionally, inquire about outplacement services, such as career coaching or resume assistance, which can expedite your job search. Approach the conversation with an assumptive tone:

“Can you tell me the severance pay I’ll receive and what kind of outplacement services are available?”

Even if your company doesn’t initially offer these benefits, negotiating for them can sometimes work in your favor, especially in a challenging job market.

3. Am I eligible for rehire?

This question helps you understand the nature of your departure. If your employer confirms you’re eligible for rehire, it indicates the layoff is due to company restructuring or budget cuts. If they say no, it could suggest performance issues, which might affect future employment opportunities. Potential employers often check your eligibility for rehire during reference calls, so obtaining clear confirmation is vital to protect your professional reputation.

4. Who should future employers contact for references?

Clarify who should be contacted for reference checks and what information will be shared. Some companies only verify dates of employment and salary history, while others might provide additional details. If there’s a discrepancy between your eligibility for rehire and the information provided during reference checks, it could impact your job prospects. Ensuring consistency and transparency in this area is crucial.

5. How will my benefits be handled?

Understanding how your departure affects benefits like health insurance, a 401(k), or bonuses is essential. Ask about:

The duration your health insurance will remain active and your COBRA options.

The status of your 401(k) and any penalties for withdrawing funds.

Any bonuses you were eligible for, and whether they’ll still be paid out.

Having a clear picture of these details will help you make informed financial decisions during your transition.

Final tip: Get everything in writing.