Laid Off or Displaced? Get Help
Has your employer laid you off from your job? Do you think you might be displaced from your work in the near future? Under certain circumstances, you may have the right to be re-trained for other work. You may also be eligible for other benefits.
Let's begin with some definitions. The terms "displaced" and "laid off" are often used interchangeably. The term "laid off" is usually used to describe workers who lose jobs because their work is no longer needed. Displaced is sometimes used to describe workers who have been permanently laid off, or laid off due to a big closure. Dislocations are layoffs due to competition from imported products.
Are You Eligible for Special Programs?
Under certain circumstances, you may be eligible for special re-training programs or other financial benefits from the federal government.
For example:
- You lose your job or get your work hours or wages reduced
because imports increased or your work moved to another country.
You may be eligible for help from the U.S. Trade Adjustment
Assistance (TAA) program.
- You are eligible for TAA help and you are over the age of 50.
You may be able to get a wage subsidy to help bridge the salary
gap between your old and new jobs. This is the Alternative Trade
Adjustment Assistance (ATAA) program. It went into effect on
August 6, 2003.
- You are part of a large layoff or plant closure.
You may be eligible to receive advance notice of a layoff or closure under a federal law called WARN (Worker Adjustment and Retraining Notification). Under WARN, you must receive a 60-day warning notice of a layoff or closure. This gives you time to receive job-finding services, including training.
WARN applies to most employers with 100 or more workers. Each state has a Rapid Response Team that comes to your place of work to help you learn about and apply for training and other services.
If you work in a union job, your right to receive advance notice of a layoff, along with state services, is part of your employment contract. Some employers may not know about WARN or about the services that the state can provide to laid-off workers.
Perhaps you work in a small or medium-sized plant that is not covered by WARN. In that case, WARN does not require your employer to give you advance notice of a plant closure or layoff.
However, states are required to give Rapid Response services in areas where unemployment has increased. So it is a good idea to check with your State Dislocated Worker Unit about any layoff or closure. This Unit is available to individual workers or groups of employees, as well as to employers.
What Services Might You Get?
Each state creates its own combination of training and other services to help dislocated workers. After you are certified, you may be eligible for:
- Reemployment services
- Career counseling and job search and placement help
- Training - up to 104 weeks of occupational skills, basic education, or literacy training
- Income Support - up to 78 weeks of Unemployment Compensation
(26 weeks) and Trade Readjustment Allowance (52 weeks), while you
are in training. In some cases, training may not be available or
right for you, but you can still receive this allowance.
As of August, 2003, workers age 50 and over may be eligible for a wage subsidy, to help cover the gap between their old and new jobs.
- Job Search Allowance - to help cover expenses of looking for
a job outside your normal commuting area
- Relocation Allowance - to help you relocate to a new job outside your normal commuting area
What about Health Insurance?
One of the biggest worries for laid off workers is health insurance. Neither unemployment insurance benefits nor programs such as TAA provide health insurance or coverage.
If you lose your job, the federal COBRA law gives you the right to keep your group health insurance for a certain time. However, you must pay the entire insurance premium (usually a monthly cost) yourself, plus up to a two percent administrative fee. Under COBRA, your employer does not pay any part of your premium.
The federal HIPAA law gives some protection when you change from one group health plan to another, or when you change from a group plan to an individual plan. This may be important for you if you change plans after your COBRA benefits have ended.
Paying for health insurance on your own is difficult for most families. In fact, this is one of the biggest challenges for workers who lose their jobs.
Unions may offer health insurance policies to members who are no longer covered under COBRA. Individuals often join associations or membership groups that offer group insurance. You may want to look for policies with very high deductibles that will protect your family in catastrophic situations.
AARP has a lot of information online about health insurance in its Health section.
Know Who to Contact for Help
To receive training and other help, affected workers have to be certified by the U.S. Department of Labor. A company, plant, or union often applies for certification for its workers.
Also, any group of three workers or more can apply.
Each state's Dislocated Worker Unit handles applications, certifications, and services. This Unit is located in the state department of labor, workforce development, or employment security, or in the Career One-Stop Center. The Unit also handles Rapid Response services for large layoffs or closures.
AARP Resources
Financial Survival Tips for the Newly Laid Off
AARP shares ideas on how to survive after a layoff.
COBRA
COBRA can help you keep your group health insurance coverage if
you lose it because of changes in your work or family life.
When You're Losing Your Group Health Insurance
AARP explains how to find and keep health insurance if you lose
your coverage before you are eligible for Medicare.
Strategies for the Uninsured
Read tips from people surveyed by AARP.
Additional Resources
Resources
for Laid-Off Workers
The Employment Training Administration (ETA) of the US Department
of Labor has all the information you need. This Web page is a
good place to start.
Trade Act
Program Information for Workers
This Web page helps you understand your options under the Trade
Act laws.
Unemployment
Help
This online booklet from the AFL-CIO has many tips for taking
charge and getting help if you are laid off. Includes ideas for
putting food on the table, keeping a roof over your head, and
staying as positive as possible.
Out of
Work? How to Deal With Creditors
The U.S. Federal Trade Commission shows how to get help when you
can't pay your bills on time.
