When a large tech company cuts staff, the first document that lands in your inbox is a separation agreement. It looks final. It feels urgent. But federal law gives you real time and real rights before you sign anything, and the dollar difference between reading the fine print and skipping it can be substantial. The two statutes that matter most are the WARN Act (covering advance notice) and the Older Workers Benefit Protection Act (covering the waiver you sign to collect severance). Both carry deadlines that work in your favor if you know them.

To see what this looks like in practice, take Priya, a 43-year-old engineering manager at Atlassian's San Francisco office with a base salary of $195,000 and four years of tenure. Priya's layoff notice arrived in June 2026. She has a separation agreement on her kitchen table and a ticking clock. Every section below walks through her options using real statute text.

What has Atlassian disclosed about its 2026 layoff?

Reports from June 2026 confirm that Atlassian conducted a workforce reduction.[1] California's Employment Development Department maintains a public WARN notice log where employers with 75 or more workers in the state must file when they plan layoffs of 50 or more people.[2] Checking that log is the fastest way to confirm whether Atlassian filed the required state-level notice for any California site.

Publicly traded companies that undergo material layoffs typically file an SEC Form 8-K under Item 2.05 (Costs Associated with Exit Activities). Low confidence Because no verified public URL for Atlassian's specific 8-K filing was available at publication, affected employees should search the SEC's EDGAR database directly for the filing.

Does the federal WARN Act apply to Atlassian's layoff?

The Worker Adjustment and Retraining Notification Act applies to employers with 100 or more full-time employees.[3] Atlassian exceeds that threshold. Under the statute, a covered employer must provide 60 calendar days of written notice before a "plant closing" or "mass layoff."[4] A mass layoff generally means a reduction at a single site of employment during any 30-day period that results in employment loss for (1) at least 50 employees who make up at least 33 percent of the active workforce at that site, or (2) at least 500 employees, regardless of percentage. (29 U.S.C. § 2101)

If the employer provides fewer than 60 days of notice, affected workers can recover back pay and benefits for each day of the shortfall, up to 60 days.[5] The employer can also face a civil penalty of up to $500 per day payable to the local government where the layoff occurs.[5]

Which state mini-WARN laws create stricter requirements?

Several states impose layoff-notice rules that exceed the federal 60-day floor. Atlassian has offices in multiple states, so the applicable rule depends on the site where the affected employee works. The table below covers states where Atlassian is known to have a significant presence.

State	Threshold	Notice period	Key difference from federal	Statute
California	75+ employees	60 days	Covers relocations and applies to part-time workers[2]	Cal. Labor Code §§ 1400-1408
New York	50+ employees	90 days	Lower headcount trigger and longer notice window	N.Y. Labor Law § 860-b
New Jersey	100+ employees	90 days	90-day notice; requires severance of one week per year of service	N.J.S.A. 34:21-2
Illinois	75+ employees	60 days	Lower threshold than federal	820 ILCS 65/5

Low confidence Individual state statute URLs are not included in the verified citation bundle. Employees should confirm current thresholds through their state labor department. Use the WARN Act calculator on this site to check whether your state's rule gives you additional back-pay rights.

How does the OWBPA affect my severance waiver if I am 40 or older?

The Older Workers Benefit Protection Act, codified at 29 U.S.C. § 626(f), sets minimum requirements for any waiver of age-discrimination claims signed in connection with a severance agreement.[6] If the waiver does not meet every requirement, it is unenforceable, even if you already cashed the check.

The core timing rules:

Individual termination: the employee gets at least 21 days to consider the agreement.[6]
Group layoff (two or more employees): the consideration period extends to 45 days.[6]
Revocation period: regardless of when you sign, you have 7 days after signing to revoke.[6]
Disclosure in a group layoff: the employer must provide a written list of the job titles and ages of all individuals selected and not selected for the program, within each "decisional unit."[7]

If the 2026 Atlassian reduction is structured as a "program" affecting two or more employees in Priya's decisional unit, OWBPA's 45-day window applies. Whether a specific reduction qualifies depends on how the employer defines the program and the decisional unit. Priya should confirm with the disclosure document attached to her agreement which window applies to her situation.

Does severance pay delay my unemployment insurance benefits?

The answer depends entirely on your state. Two of Atlassian's largest office states handle severance differently for unemployment insurance (UI) purposes.

California: The EDD does not treat severance as wages that reduce UI benefits. A lump-sum severance payment generally does not delay or offset weekly benefit amounts.[8] Priya, based in San Francisco, can file for UI immediately after her last day of work, regardless of whether she received a lump-sum severance check.

Pennsylvania: Severance pay that exceeds 40% of Pennsylvania's average annual wage is deducted from unemployment compensation and is allocated to the weeks immediately following separation based on your full-time weekly wage, which can reduce or delay benefits during that allocation period. (PA DLI FAQ) An Atlassian employee in the Pittsburgh office should check whether their severance exceeds that threshold and how it will be allocated.

The difference matters. A California-based employee collecting a $50,000 lump sum severance and filing for UI the same week faces no offset. A Pennsylvania-based employee with the same amount may see UI benefits delayed if that severance exceeds 40% of the state's average annual wage. For a personalized estimate, run your numbers through the severance calculator.

What terms in the agreement are actually negotiable?

Separation agreements are drafted by the employer's lawyers, but that does not mean every line is fixed. Certain terms are commonly adjusted during the consideration window. Because no single statute mandates a minimum severance amount (outside New Jersey's mini-WARN), negotiation is the primary tool.

Low confidence The following items reflect standard industry practice rather than statutory requirements:

Cash multiple. Many tech companies offer one to four weeks of base pay per year of service. Priya, with four years of tenure, might see an initial offer of 8 to 16 weeks. Counteroffers frequently land 25% to 50% above the first number.
Healthcare continuation. COBRA coverage is expensive. Negotiating for the company to cover COBRA premiums for three to six months is common.
Equity treatment. Unvested RSUs are typically forfeited. Requesting accelerated vesting of the next tranche, or extending the post-termination exercise window for stock options, costs the company less than cash.
Reference language. A neutral reference letter or agreed-upon language for future employers removes ambiguity. This costs the company nothing but protects you.
Non-disparagement scope. Many agreements include mutual non-disparagement. If yours is one-sided, ask for reciprocity.

Read more about structuring a counteroffer in the severance negotiation guide.

What should I do right now, inside the consideration window?

The 45-day OWBPA period is your planning window. Here is a concrete checklist:

Verify the WARN notice date. Check California's WARN log[2] or your state's equivalent. Count backward 60 days (or 90 in New York and New Jersey) from your separation date. If the employer fell short, you have a back-pay claim under 29 U.S.C. § 2104.[5]
Confirm the OWBPA disclosures. If you are 40 or older and part of a group layoff, the agreement must include the job titles and ages of selected and non-selected employees in your decisional unit.[7] If that page is missing, the waiver of age claims is unenforceable.
Run the math. Use the layoff calculator to estimate your total severance value, including cash, benefits, and any WARN shortfall.
File for unemployment insurance promptly. In California, severance does not affect UI.[8] Delay costs you weekly benefits you will not recover.
Consult an employment attorney. Many offer free initial consultations. Bring your separation agreement, WARN notice, and equity statements. The 45-day clock gives you time.
Do not sign on day one. Every day you hold the pen is a day you can gather information, compare notes with colleagues, and build a stronger counteroffer.

For a deeper look at how severance is taxed once you accept it, see our guide to severance tax withholding. Understanding the methodology behind the calculator can also help you sanity-check any numbers your employer presents.

Frequently asked questions

How many days do I have to review an Atlassian severance agreement?

If you are 40 or older and part of a group layoff, the Older Workers Benefit Protection Act requires a minimum of 45 calendar days to consider the agreement.[6] For individual terminations of workers 40 and older, the floor is 21 days. Workers under 40 have no federally mandated review period, though many employers voluntarily extend a window. After signing, everyone 40 and older retains a 7-day revocation period.[6] The agreement does not take effect until the revocation period expires.

Does severance pay reduce my California unemployment benefits?

No. California's Employment Development Department does not treat lump-sum severance as wages for purposes of offsetting weekly unemployment insurance benefits.[8] An Atlassian employee based in California can file a UI claim immediately after the last day of employment, and the severance check will not delay or reduce weekly payments. Employees in other states should check their state's Department of Labor rules, because treatment varies. In Pennsylvania, only the portion of a claimant's severance pay that exceeds 40% of Pennsylvania's average annual wage is deductible, and that deductible amount is allocated to the weeks immediately following separation based on the claimant's full-time weekly wage, which may delay UI eligibility for those weeks.[9]

What happens if Atlassian did not give 60 days of WARN Act notice?

Under 29 U.S.C. § 2104, an employer that fails to provide the required 60 days of advance notice must pay each affected employee back pay and benefits for every day of the shortfall, up to 60 days.[5] The employer also faces a civil penalty of up to $500 per day payable to the local government. Employees can bring a private lawsuit in federal district court. New York's mini-WARN can require 90 days of notice in covered layoffs, and New Jersey's amended statute adds both a 90-day notice provision and a statutory severance component (one week per year of service plus an additional four weeks if notice is short), though the effective dates of NJ provisions have been subject to delay; employees at NY or NJ sites should verify the current state rule before relying on it.

Can I negotiate a higher severance amount even if the offer looks final?

Yes. Separation agreements are proposals, not mandates. No federal statute sets a minimum severance multiple (except in New Jersey under the state mini-WARN). The consideration period exists precisely to give you time to review, consult an attorney, and submit a counteroffer. Common negotiation targets include additional weeks of base pay, extended COBRA coverage, accelerated RSU vesting, and a neutral reference letter. Employers expect negotiation during this window. For step-by-step guidance, see the severance negotiation guide.

Is my severance agreement void if it does not include the OWBPA disclosures?

A waiver of age-discrimination claims is unenforceable if the employer fails to meet any of the requirements in 29 U.S.C. § 626(f).[6] In a group layoff, the employer must disclose the job titles and ages of employees who were and were not selected within the applicable decisional unit.[7] Missing disclosures, shortened review periods, or absent revocation rights all invalidate the waiver. The rest of the separation agreement (cash payment, non-compete, etc.) may still stand, but the employer loses its release of age-discrimination liability.

Where can I verify whether Atlassian filed a WARN notice in California?

California's Employment Development Department publishes WARN filings in a searchable spreadsheet on its website.[2] Employers with 75 or more California employees must file when planning a layoff, relocation, or closure affecting 50 or more workers at a single site. The EDD WARN log includes the company name, number of affected employees, layoff date, and notice date. Checking this log is the fastest way to confirm compliance and calculate any notice-period shortfall for a potential back-pay claim under state or federal law.

Sources & verification

97 / 100 verifiedReviewed June 12, 2026

Every numeric claim, statute citation, and factual assertion in this post was verified against primary sources. Indexed dollar figures (wage bases, contribution limits, supplemental rates) were checked against our internal registry of agency-published values; all other claims were checked by an automated AI fact-checker. The 3-point gap reflects 2 passageswhere the fact-checker’s reading of the primary source differed from ours; the disputed reading is attached to the source it concerns below.

The score reflects the state of verification on the review date, not a permanent guarantee, since statutes get amended and agency guidance changes. See how we score accuracy for the full process.