When a large employer announces layoffs, the first question is usually about the severance check. But the severance check sits inside a larger legal framework, and understanding that framework is how you figure out whether the offer on the table is fair or just fast. Federal law sets minimum notice requirements for certain plant closings and mass layoffs under the WARN Act. Federal law also dictates how long workers age 40 or older get to review a severance agreement before signing when the agreement includes an age-discrimination waiver. State law determines whether accepting severance delays your unemployment benefits. All three layers matter.

To see what this looks like in practice, take Dani, a logistics operations manager at Expeditors International earning $105,000 per year. Dani received a separation package in June 2026 and has a window to decide whether to sign. Every worked example below follows Dani through the math.

Does the federal WARN Act apply to Expeditors International layoffs?

The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time employees to provide 60 calendar days of written notice before a plant closing or mass layoff.[1] A "mass layoff" under the statute means a reduction affecting either at least 500 employees at a single site of employment, or at least 50 employees if they make up at least 33% of the active workforce there, during any 30-day period.[1]

Expeditors International, a global logistics company headquartered in Seattle, employs well over 100 people. If the 2026 reduction meets the WARN Act's employer-size and event thresholds, affected workers are entitled to 60 days' notice. Failure to provide it triggers liability for back pay and benefits for each day of the shortfall, up to 60 days.[2]

Count the calendar days between the date you received written notice and your last working day. If the gap is less than 60 days and no statutory exception applies (natural disaster, faltering company, or unforeseeable business circumstances), you have a claim for WARN Act back pay.[2]

Which states have stricter "mini-WARN" laws that add more protection?

Several states impose notice requirements that exceed the federal 60-day floor. If Expeditors has employees at sites in any of these states, the stricter state rule controls. The table below covers the most commonly triggered mini-WARN statutes.

State	Threshold (employees)	Notice period	Statute
California	75	60 days	Cal. Lab. Code § 1401
New York	25	90 days	N.Y. Lab. Law § 860-b
New Jersey	100	90 days	N.J.S.A. 34:21-2
Illinois	75	60 days	820 ILCS 65/5
Wisconsin	50	60 days	Wis. Stat. § 109.07
Tennessee	50-99 (partial coverage)	60 days	Tenn. Code § 50-1-602

Low confidence

State mini-WARN thresholds and notice periods are drawn from individual state labor code texts. Specific site-level applicability depends on headcount at each Expeditors location.

New York's 90-day notice period is the longest in the country. If Expeditors has a site in New York with 25 or more affected workers, employees at that site need 90 days of notice, not 60.[1]

How does the OWBPA protect workers 40 and older during severance negotiations?

The Older Workers Benefit Protection Act (OWBPA) sets strict rules for any severance agreement that asks a worker age 40 or older to waive age-discrimination claims under the ADEA.[3] A waiver is not "knowing and voluntary" unless specific conditions are met.[3]

For an individual termination, the employee must receive at least 21 days to consider the agreement.[3] For a group layoff (an "exit incentive or other employment termination program"), the review period extends to 45 days.[4] In both cases, the employee gets 7 days after signing to revoke the agreement.[3]

The agreement must also be written in plain language, advise the employee to consult an attorney, and not require waiver of any rights arising after the date the agreement is signed.[3]

In a group layoff, OWBPA requires the employer to disclose the job titles and ages of all individuals selected for the program, along with the titles and ages of those in the same "decisional unit" who were not selected.[4] Dani should look for this attachment to the severance agreement. Its absence makes the waiver voidable.

Does severance pay affect unemployment insurance eligibility?

The answer depends on the state where you file. States differ on whether they treat a lump-sum severance payment as deductible income, allocate it across weeks, or ignore it entirely.

California. The California Employment Development Department generally does not reduce unemployment benefits because of severance pay, provided the payment is not allocated to a specific future period of employment.[5]

Pennsylvania. Pennsylvania reduces unemployment benefits for severance pay only to the extent that your total severance exceeds 40% of Pennsylvania's average annual wage, and the deductible amount above that threshold is allocated to the weeks immediately following separation based on the claimant's full-time weekly wage.[6]

The critical question is how Expeditors structures the payment. A lump sum labeled "severance" is treated more favorably in most states than weekly payments labeled "salary continuation." If your severance agreement offers a choice between lump sum and installments, check your state's unemployment rules before choosing.

For a quick estimate of your total separation value (including severance, WARN back pay, and benefits), use the layoff calculator or the severance tax calculator to model different payout structures.

What severance terms can you actually negotiate?

No federal statute requires a private employer to pay severance at all. Severance is almost always discretionary, which means the terms are negotiable. Here are the variables most commonly on the table:

Cash multiple. Initial offers often start at one to two weeks of base salary per year of service. Low confidence Asking for a higher multiple is standard, especially if you have strong performance reviews or the company has WARN Act exposure.
Healthcare continuation. COBRA allows you to continue employer-sponsored health insurance for up to 18 months, and you generally pay the full premium plus up to a 2% administrative fee. Negotiating employer-paid COBRA for three to six months reduces out-of-pocket costs significantly.
Equity treatment. For employees with unvested RSUs or stock options, the separation agreement should specify the vesting cutoff date, whether any acceleration applies, and the post-termination exercise window for options.
Reference language. A neutral or positive reference letter, agreed upon in writing, removes ambiguity from future background checks. Some agreements include a mutual non-disparagement clause.
Outplacement services. Employers sometimes bundle outplacement support into the package. The dollar value of that benefit is worth less than equivalent cash if you already have a strong professional network.

Read more on negotiation strategy in our guide to negotiating severance.

What should you do during the consideration window?

The consideration window (21 or 45 days depending on whether the layoff is individual or group) is a hard deadline. Using that time well matters more than using it all.

Days 1 to 4. Read the entire agreement. Identify the release of claims, the consideration (what you get), the restrictive covenants (non-compete, non-solicit), and the WARN Act notice date. Gather your offer letter, most recent pay stub, benefits summary, and equity vesting schedule. Collected documents establish your baseline.

Days 5 to 14. Consult an employment attorney. Many offer a flat-fee severance review. Bring the WARN Act timeline math: count whether the company provided the full 60 days of notice.[1] Bring the OWBPA disclosure attachment if you are 40 or older.[3]

Days 15 to deadline. Submit any counter-proposal in writing. Keep the tone professional and factual. If the employer revises the agreement, a new 21-day or 45-day clock may start depending on how material the changes are.[4]

File for unemployment benefits on your state's DOL website as soon as your last day passes. In most states, there is a one-week unpaid waiting period, so filing early starts that clock. See our state-by-state severance guides for links to each state's filing portal.

Frequently asked questions

How long does Expeditors International have to provide WARN Act notice before a mass layoff?

The federal WARN Act requires 60 calendar days of written notice before a plant closing or mass layoff at a site with 50 or more affected employees.[1] If Expeditors failed to provide the full 60 days, affected employees can claim back pay and benefits for each day of the shortfall, up to 60 days.[2] State mini-WARN laws in New York and New Jersey extend the notice period to 90 days for qualifying events.

What is the OWBPA review period for employees 40 and older?

Workers age 40 or older must receive at least 21 days to review a severance agreement that waives age-discrimination claims under an individual termination.[3] In a group layoff program, the review period increases to 45 days.[4] After signing, the employee has 7 days to revoke. The employer must also advise the employee in writing to consult an attorney before signing.[3]

Does accepting severance disqualify me from unemployment benefits?

Eligibility depends on your state. In California, the EDD generally does not reduce unemployment benefits because of severance pay, provided the payment is not allocated to a specific future period of employment.[5] Pennsylvania reduces unemployment benefits for severance pay only to the extent that your total severance exceeds 40% of Pennsylvania's average annual wage, and the deductible amount above that threshold is allocated to the weeks immediately following separation based on the claimant's full-time weekly wage.[6] Filing promptly after your last day is important in every state because most states impose a one-week unpaid waiting period before benefits begin.

Can I negotiate a higher severance offer from Expeditors?

Severance is not required by federal law, which means it is inherently negotiable. Common negotiation levers include WARN Act exposure (if notice was short), length of service, and the breadth of the release of claims the employer is asking you to sign. Requesting employer-paid COBRA, extended equity vesting, or a larger cash multiple are all standard asks. See our negotiation guide for a step-by-step framework.

Should I sign the severance agreement before the deadline?

Signing early does not change the length of the 7-day revocation window.[3] Most employment attorneys recommend using the majority of your consideration window to review the terms, consult legal counsel, and submit a counter-proposal if warranted. The 21-day or 45-day window is one of the OWBPA timing requirements that must be met before an age-discrimination waiver can be valid. Use it. Review our WARN Act calculator to verify your notice-period math before making a decision.

What happens if Expeditors did not include the OWBPA age-disclosure attachment?

In a group layoff, the employer must attach a list of job titles and ages of all employees selected and not selected within the "decisional unit."[4] Omitting this attachment makes the age-discrimination waiver voidable. An employee who signed without receiving the disclosure can argue the waiver was not "knowing and voluntary" under 29 U.S.C. § 626(f). Consulting an employment attorney promptly is the best next step if the disclosure is missing from your agreement.

Sources & verification

97 / 100 verifiedReviewed June 14, 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 1 passagewhere 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.