Layoff FAQ


Q: "When can I apply for unemployment?"
A: It depends entirely on which state you live in, as state labor departments handle the WARN period differently
     For Texas Residents: You must wait until the 60-day WARN period ends and your regular paychecks completely stop before you file. Texas considers you fully employed if you are receiving your regular salary and benefits. If you apply during the 60 days, Texas will deny your weekly claims because you have not yet suffered an eligible "loss of wages." File on your first official day off the payroll.

Q: "When does my insurance run out and COBRA kick in?"
     After you are officially separated and off the company payroll. This will happen after the WARN Act period has elapsed and effects bargaining has concluded.

Q: "What is the WARN Act and when will severance start?"
     The WARN Act is a mandated 60-day notice period for mass layoffs. This notice was officially served to the union on July 6, 2026. This means everyone affected by the layoffs will continue to receive their regular pay and benefits until at least September 4, 2026. It could be longer if effects bargaining goes past that date, as the company cannot legally remove anyone from regular payroll until both the 60-day notice expires and negotiations are complete. Severance packages will kick in only after you are officially off regular payroll.

Q: "What happens if I find a new job during the 60-day WARN notice period?"
A:Do not quit your current job or sign a new offer letter until you talk to a union representative.
     Under the federal WARN Act, if you voluntarily resign before your official separation date to take a new job, the company can legally stop your regular paychecks immediately, and you may forfeit your right to the negotiated severance package. Something we will push for in effects bargaining for a "safe harbor" or "cooperation clause" so that members who find work early can transition without losing their hard-earned severance.

Q: "Will my accrued vacation/PTO hours be paid out?"
     The union will be explicitly fighting in effects bargaining to ensure that all of your accrued, unused vacation time is paid out as a lump sum upon your official separation date.

Q: "Is severance pay taxable, and how is it paid?"
A: Yes
     Severance pay is considered taxable income by the IRS and state tax authorities. It is usually taxed at a flat "supplemental wage" withholding rate (typically 22% for federal taxes plus state taxes), which means your severance check might look smaller than your regular paycheck. As part of our negotiations, we will be bargaining over whether this will be paid out as one large lump sum or in bi-weekly installments.

Q: "What happens to my 401(k) and company match during the 60 days?"
     Because you remain fully on the company payroll during the 60-day WARN period, your 401(k) contributions will continue to be deducted from your paychecks as usual, and the company must continue to pay out any promised matching contributions during this window. Once you hit your official separation date, your accounts will freeze, and you should receive instructions from the company on how to roll your 401(k) over into an IRA or a new employer's plan. No one can touch your vested balance.

Q: "Should I sign any legal documents from the company?"
A: Absolutely not
     Do not sign anything until you have discussed it with your Local Union leadership and they have given you the green light to proceed. Signing anything prematurely could cause you to accidentally waive your rights or lock yourself out of the enhanced benefits, healthcare, or severance the union is currently bargaining for.

Q: "Am I still bound by the company's moonlighting policy?"
A: Yes
     Because you remain a regular employee on active payroll during the WARN period and bargaining phase, you continue to be bound by all company policies, including conflicts of interest and moonlighting rules.

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