What BlocPower Employees Should Know About Their 2026 Severance Package

When a company shuts down and lays off its entire workforce, the legal protections available to each employee depend on the size of the employer, the state where the employee worked, and whether the employer gave adequate notice. Federal law sets a floor: the WARN Act requires covered employers to give 60 calendar days of written notice before a mass layoff or plant closing, and the Older Workers Benefit Protection Act (OWBPA) dictates how long workers 40 and older get to review a severance agreement before signing. Neither law guarantees a severance check, but both create pressure that gives workers real bargaining power.

To see what these rules look like in practice, take Priya, a 44-year-old project manager who worked at BlocPower's Brooklyn office earning $125,000 per year. On August 19, 2026, BlocPower announced it was laying off 100% of its staff. The company has not publicly disclosed the total headcount affected. Priya received a severance agreement the same week and now has a limited window to review, negotiate, and decide. Every section below walks through Priya's situation so the math stays concrete.

What did BlocPower actually announce?

On August 19, 2026, BlocPower announced a layoff affecting 100% of its staff. The company has not disclosed the exact number of employees affected, the severance formula offered, or the details of any benefits continuation. The layoff is tracked on layoffs.fyi's 2026 tracker, which serves as the primary public record of the event.

Because BlocPower is a private company, there is no SEC Item 2.05 filing to review. Affected workers should request a copy of their individual separation agreement, the company's WARN Act notice (if one was filed), and any benefits continuation documentation directly from BlocPower's HR or legal team.

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

The Worker Adjustment and Retraining Notification (WARN) Act covers employers with 100 or more full-time employees.[1] A "plant closing" under WARN occurs when an employer shuts down a single site of employment and the shutdown results in an employment loss for 50 or more employees during any 30-day period.[1] A "mass layoff" is defined as a reduction in force at a single site that affects at least 50 employees who make up at least 33% of the active workforce, or any layoff of 500 or more employees at a single site.[1]

BlocPower has not disclosed its total headcount. If the company employed 100 or more full-time workers, the WARN Act required 60 calendar days of written notice before the layoff.[1] If fewer than 60 days of notice were provided, each affected employee is entitled to back pay and benefits for each day of the notice shortfall, up to 60 days.[2]

Use the WARN Act calculator to estimate your own back-pay exposure.

Does New York's mini-WARN law give BlocPower workers extra protection?

BlocPower was headquartered in Brooklyn, New York. New York State has its own WARN Act (NY WARN) that is stricter than the federal version in two important ways.[3] First, NY WARN applies to employers with 50 or more full-time employees, compared to the federal threshold of 100.[3] Second, NY WARN requires 90 calendar days of advance notice, compared to 60 days under federal law.[3]

Several other states have mini-WARN statutes that could apply if BlocPower had employees working in those states. The table below summarizes the key differences.

If Priya worked out of the Brooklyn office, NY WARN's 90-day notice period applies. A 90-day shortfall at her daily rate of $342.47 would equal $30,822 in potential back pay, roughly $10,000 more than the federal WARN calculation.

How does OWBPA affect BlocPower workers who are 40 or older?

The Older Workers Benefit Protection Act (OWBPA), codified at 29 U.S.C. § 626(f), sets specific requirements for any severance agreement that asks a worker 40 or older to waive age-discrimination claims.[5] If the waiver does not meet every OWBPA requirement, a court can void the release entirely, and the worker keeps the severance payment.[5]

The review period depends on how the layoff was structured:

• Individual termination: the worker must receive at least 21 days to consider the agreement.[5]
• Group layoff (exit incentive or other employment termination program): the worker must receive at least 45 days to consider the agreement.[5]

Because BlocPower laid off 100% of staff, OWBPA's group-layoff rules almost certainly apply. Every affected worker 40 or older should receive 45 days to consider the agreement, plus a mandatory 7-day revocation period after signing.[5] The employer must also provide a written disclosure listing the job titles and ages of all employees selected and not selected for the program.[6]

How does severance pay interact with unemployment insurance in New York?

New York's Department of Labor treats severance pay and unemployment insurance (UI) as separate streams. According to the NY DOL, dismissal or severance pay does not affect unemployment insurance eligibility if the payment is made as a lump sum or if the employer does not allocate the payment to a specific period of employment.[7] However, if the employer structures severance as salary continuation (paying the same biweekly amount on the same schedule), New York may treat those weeks as weeks of employment and delay UI benefits until the continuation period ends.[7]

Priya should ask BlocPower's HR team whether her severance will be paid as a lump sum or as salary continuation. A lump-sum payment is generally more favorable for UI purposes in New York. She should file for unemployment benefits as soon as possible after her last day of work, regardless of the severance structure. Filing early preserves the claim date even if benefit payments are delayed.

For workers in California, the EDD has stated that severance pay is not deducted from unemployment benefits when it is paid as extra compensation for past services rather than as wages allocated to a specific future period.[8]

Learn more about how severance affects your taxes and how to estimate your total package.

What terms can BlocPower employees negotiate?

A severance agreement is a contract, and almost every term is negotiable during the review window. The EEOC's guidance on waivers confirms that employers cannot require employees to waive future claims in exchange for benefits they are already owed (such as WARN Act back pay or accrued vacation).[9] Here are the areas where BlocPower employees have room to push:

Cash multiple. Many technology companies offer one to four weeks of base pay per year of service. BlocPower has not disclosed its formula. Workers with specialized knowledge of the company's technology or customer relationships can argue for a higher multiplier.

Healthcare continuation. COBRA coverage is expensive. Employees should request that BlocPower pay the employer share of COBRA premiums for three to six months beyond the separation date, or offer a lump-sum health stipend.

Equity treatment. If BlocPower granted stock options or restricted stock, employees should review their equity agreements to determine what happens to unvested shares upon termination. Acceleration of vesting is a common negotiation point in a full company shutdown.

Reference language. A neutral or positive reference letter, agreed to in writing, protects the employee's job search. Workers can also negotiate for a mutual non-disparagement clause rather than a one-sided restriction.

Outplacement services. Some employers offer career coaching or job-placement assistance as part of the severance package. Workers can request a specific dollar amount or a named provider.

For a deeper look at negotiation strategies, see our guide on how to negotiate severance and the broader severance insights library.

What should BlocPower employees do right now?

The consideration window is limited. Here are concrete steps for the next 30 days:

1. Read the full agreement. Do not sign anything on the day you receive it. OWBPA gives workers 40 and older at least 45 days in a group layoff.[5]
2. Check for WARN Act compliance. Request a copy of BlocPower's WARN notice. If no notice was provided, or if it was provided fewer than 60 (or 90, under NY WARN) days before the layoff, document the dates carefully.[1][3]
3. Consult an employment attorney. OWBPA requires that the employer advise the worker in writing to consult a lawyer.[5] Many employment attorneys offer a free initial consultation.
4. File for unemployment. File with the New York Department of Labor (or your state's agency) on your last day of work. Do not wait for the severance decision.[7]
5. Review equity documents. Pull your stock option agreement, any vesting schedule, and the company's equity plan. Understand what happens to unvested shares.
6. Run the numbers. Use the severance calculator to estimate your expected payout, and the WARN Act calculator to estimate any back-pay owed.
7. Keep records. Save every email, letter, and Slack message related to the layoff. Documentation matters if a dispute arises later.

The DOL's layoff FAQ page and the Worker Guide to WARN are both free resources that explain federal protections in plain language.[10][11]

Frequently asked questions

Does BlocPower have to offer severance pay?

No federal or state law requires a private employer to offer severance pay. Severance is a contractual benefit. The WARN Act and state mini-WARN laws can create an obligation to pay back wages if the employer failed to give adequate notice, but that back pay is a penalty for inadequate notice, not severance in the traditional sense.[1][2] Workers should review their offer letters, employee handbooks, and any prior written severance policies to determine whether BlocPower made a binding promise of severance.

How long do BlocPower employees have to sign the severance agreement?

Under OWBPA, workers 40 and older in a group layoff must receive at least 45 calendar days to review the agreement, plus a 7-day revocation period after signing.[5] Workers under 40 have no federally mandated review period, but the employer may still set a contractual deadline. Any deadline shorter than 45 days for a worker 40 or older in a group layoff violates OWBPA and can void the release.[6]

Can I collect unemployment while receiving severance from BlocPower?

In New York, a lump-sum severance payment generally does not disqualify a worker from receiving unemployment insurance benefits.[7] Severance paid as salary continuation on the employer's regular payroll schedule can delay benefits. Workers in California are similarly eligible for UI benefits alongside a lump-sum severance payment, because the EDD treats such payments as extra compensation rather than wages for a future period.[8] File for unemployment on your last working day regardless of the severance structure.

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

Each affected employee at a covered employer is entitled to back pay equal to their average daily compensation for every day of the notice shortfall, up to 60 days.[2] Under New York's mini-WARN law, the notice period is 90 days, so the back-pay exposure can be significantly larger.[3] Employees can bring a WARN Act claim in federal court, and the employer may also owe a civil penalty of up to $500 per day to the local government where the layoff occurred.[2]

Should I negotiate my BlocPower severance offer?

Yes. The EEOC confirms that employers cannot condition severance on the waiver of claims the employee is already owed, such as WARN Act back pay or accrued wages.[9] Common negotiation points include a higher cash multiple, extended healthcare coverage, accelerated equity vesting, and a written reference letter. Workers who consult an employment attorney before signing tend to receive materially better terms. See our severance negotiation guide for a step-by-step framework.

Who qualifies for the 45-day OWBPA review period at BlocPower?

Every worker aged 40 or older who is part of a group layoff (an "exit incentive or other employment termination program") receives the 45-day review window under 29 U.S.C. § 626(f).[5] Because BlocPower laid off 100% of staff, the group-layoff standard almost certainly applies. Workers under 40 are not covered by OWBPA and receive whatever review period BlocPower specifies in the agreement. The employer must also disclose the job titles and ages of all employees in the decisional unit who were and were not selected for the program.[6]

Sources & verification