What Block Employees Should Know About Their 2026 Severance Package

When a large tech company cuts hundreds of roles at once, every affected employee faces the same pair of questions: what am I owed by law, and what can I ask for beyond the legal minimum? Federal statutes like the WARN Act and OWBPA set minimum notice and waiver timelines in specific mass layoff and age-discrimination waiver contexts, and can create back-pay remedies when those rules are violated. (29 U.S.C. § 2102) State laws sometimes raise that floor. And the severance agreement itself is a contract, meaning its terms are open to discussion until you sign. Knowing those three layers before the signature deadline arrives is the single highest-value move a laid-off worker can make.

To see what this looks like in practice, take Priya, a 44-year-old senior engineer at Block's San Francisco office. Priya received her termination notice on June 11, 2026, as part of Block's announced cut of about 700 roles. She has a severance agreement sitting in her inbox, a ticking review clock, and a list of questions that all trace back to the same statute sections. The rest of this post walks through those sections, then applies them to Priya's numbers.

What did Block actually announce?

Block, Inc. disclosed a reduction of about 700 roles on June 11, 2026. The company has not disclosed the percentage of its workforce affected. Public layoff trackers have cataloged the event, and New York state WARN filings from Block's earlier 2024 reduction are on file with the New York Department of Labor. [1] No SEC Item 2.05 filing specific to the June 2026 event has been independently verified as of this writing. Low confidence

For Priya and her colleagues, the practical question is whether the cut's size triggers federal and state notice obligations. The answer depends on how many employees work at each affected site and how many are being let go within a 90-day window.

Does the federal WARN Act apply to a 700-person cut?

The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time employees to give 60 calendar days' written notice before a "plant closing" or "mass layoff." [2] A mass layoff is defined as a reduction of at least 50 employees at a single site of employment during any 30-day period, provided that number represents at least one-third of the site's workforce, or a reduction of 500 or more employees at a single site regardless of percentage. [2]

Block employs thousands of workers. A cut of about 700 roles company-wide will almost certainly include at least one site where 50 or more employees lose their jobs. At any such site, the 60-day notice clock applies. If Block did not provide 60 days of advance written notice, affected workers are entitled to back pay and benefits for each day of the violation, up to 60 days. [3]

Workers who believe they received fewer than 60 days of notice can pursue a private action in federal district court under the WARN Act, and can use the Department of Labor's layoff resources page for guidance on their rights. (DOL layoff resources)

How does California's mini-WARN law differ from the federal rule?

Block's headquarters are in San Francisco, California. (California EDD WARN) California's own WARN Act (Cal-WARN) is stricter than the federal statute in two important ways: it covers employers with 75 or more employees (versus the federal threshold of 100), and it has no one-third-of-workforce qualifier for mass layoffs; it also applies to covered plant closures and relocations affecting 50 or more employees at a site. [5] Any layoff of 50 or more employees at a covered California site within a 30-day period triggers the 60-day notice requirement, full stop.

Several other states where Block has offices impose their own mini-WARN requirements. The table below compares the most relevant ones.

Priya works in California, so Cal-WARN's lower threshold and the absence of the one-third qualifier both work in her favor. If Block failed to give 60 days' notice to the San Francisco site, each affected California employee can seek back pay under state law as well.

What OWBPA review periods apply to Block workers 40 and older?

If Block's severance agreement asks Priya to waive age-discrimination claims under the Age Discrimination in Employment Act (ADEA), the Older Workers Benefit Protection Act (OWBPA) imposes strict timing rules. [6]

For an individual termination, the employee must receive at least 21 days to consider the waiver. For a group termination (which a 700-person layoff qualifies as), the review period extends to 45 days. [6] In both cases, the employee has 7 additional days after signing to revoke the waiver. [6]

The EEOC's guidance on waivers spells out additional requirements: the agreement must be written in plain language, it must specifically reference rights under the ADEA, it must advise the employee to consult an attorney, and the employee must receive something of value beyond what they are already owed. [7]

Block is required to provide Priya with a disclosure listing the job titles and ages of all employees who were and were not selected for the group layoff within her "decisional unit." [8] If the company omits this disclosure, the waiver is voidable.

How does a Block severance payment interact with unemployment insurance?

Severance pay and unemployment insurance (UI) interact differently by state. In New York, for example, a lump-sum severance payment does not delay or reduce UI benefits, but severance paid in installments that resemble continued salary can be treated as wages and offset benefits. [9] [10]

In California, the Employment Development Department (EDD) generally does not treat payments made under a supplemental unemployment benefit plan as wages for UI purposes, so those payments do not reduce weekly benefit amounts, but wages in lieu of notice and certain salary-continuation arrangements are treated as wages and can affect UI eligibility and benefit amounts. (EDD UI guidance) Priya should file her California UI claim as soon as her last day of employment arrives, regardless of whether her severance check has landed.

The key principle across most states: file for unemployment immediately. Severance categorization varies, and waiting to file only delays benefits if the state determines severance is non-disqualifying.

For a rough estimate of after-tax severance, try the severance tax calculator on this site. For state-specific unemployment details, the California calculator or New York calculator pages walk through the math.

What terms can a departing Block employee ask to change?

A severance agreement is a contract. Until you sign, every term is open to discussion. While no federal statute mandates a specific severance multiplier or benefit continuation period, the existence of the OWBPA consideration window gives workers 40 and older a structured period in which to negotiate. [6]

Common items to raise before signing:

• Cash multiple. If Block offers two weeks per year of service, ask whether four weeks is available. The request costs nothing to make.
• Healthcare continuation. COBRA coverage is expensive. Ask Block to subsidize premiums for a defined period beyond the legal minimum.
• Equity treatment. Unvested RSUs often accelerate on a schedule that differs from the severance agreement's default. Read the equity plan document and compare it to the agreement's language.
• Reference language. Ask for a written, neutral or positive reference and a commitment that the company will not contest your UI claim.
• Non-compete scope. California generally voids post-employment non-competes, but other states do not. If your agreement includes one, ask for it to be narrowed or removed.

Low confidence (No federal statute prescribes specific negotiation outcomes; the items above reflect common practice.)

For a deeper walkthrough of negotiation tactics, see the negotiate your severance guide and the related post on how severance is calculated.

What should Block employees do right now?

If you are inside your consideration window, here is a concrete sequence:

1. Read the full agreement. Note every deadline, especially the 45-day review period and 7-day revocation window. [6]
2. Check your WARN Act notice. Count the calendar days between the date you received written notice and your last day of employment. If fewer than 60, you may have a back-pay claim under 29 U.S.C. § 2104. [3]
3. File for unemployment. Do this on or immediately after your last working day. The DOL's layoff assistance page links to every state's filing portal. [4]
4. Consult an employment attorney. The OWBPA requires that the agreement advise you to do this. Follow that advice. Many attorneys offer a flat-fee severance review.
5. Run your numbers. Use the free severance calculator to estimate your package value, then compare it to the agreement's offer.
6. Negotiate before you sign. Use the full review period. The clock is there for your benefit, not the company's.

For more context on WARN Act mechanics, see the WARN Act calculator page and the post on how WARN Act protections work in practice.

Frequently asked questions

Does the WARN Act guarantee severance pay to Block employees?

No. The WARN Act does not require severance pay. It requires 60 days of advance written notice before a mass layoff or plant closing. [2] If an employer fails to provide that notice, the remedy is back pay and benefits for up to 60 days, calculated under 29 U.S.C. § 2104. [3] Severance pay itself is a contractual matter between employer and employee, not a statutory entitlement under WARN.

How long do Block employees over 40 have to review a severance agreement?

In a group termination affecting two or more employees, the OWBPA grants 45 calendar days to consider an age-claim waiver, plus 7 days to revoke after signing. [6] For an individual termination, the consideration period is 21 days. Because Block's layoff affects about 700 people, the 45-day period applies.

Can Block employees collect unemployment while receiving severance?

It depends on the state and how severance is structured. In New York, lump-sum severance does not offset UI benefits, but installment payments can reduce them. [9] In California, the EDD generally does not treat payments under supplemental unemployment benefit plans as disqualifying wages, but severance structured as wages in lieu of notice or salary continuation can be treated as wages and may affect UI benefits. (EDD UI guidance) File your unemployment claim on or immediately after your last day of work regardless of severance status.

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

Affected employees at each site that triggered the mass-layoff threshold can seek back pay for each day of the notice shortfall, up to 60 days, plus the cost of any benefits that would have been provided during that period. [3] Employees can bring a private lawsuit in federal district court under the WARN Act. The employer may also face a civil penalty of up to $500 per day for failing to notify the local government. [3]

Should a Block employee sign the severance agreement on the first day?

No. The OWBPA's 45-day consideration period exists so employees can consult an attorney, compare the offer to market benchmarks, and negotiate better terms. [6] Signing early does not earn goodwill; it forfeits time. Use the severance calculator to estimate your package, and take the full window to make a decision.

What information must Block include in a group layoff severance offer for workers 40 and older?

Under 29 C.F.R. § 1625.22, the employer must disclose the job titles and ages of all individuals eligible and ineligible for the program within the "decisional unit," along with the eligibility factors and time limits. [8] If Block omits any of these disclosures, the age-claim waiver may be unenforceable.

Sources & verification