What Relay Employees Should Know About Their 2026 Severance Package

When a company shuts down and lays off its entire workforce, the separation package you receive is not a gift. Federal law sets a floor for notice and back pay, and age-discrimination statutes govern how long you have to review any waiver before you sign away your right to sue. The details matter because signing too early, or missing a deadline, can cost you weeks of pay or legal claims you did not know you had. Most workers have more room to push back than they realize, especially when the employer needs clean releases to wind down operations.

To see what this looks like in practice, take Devin, a 44-year-old account manager at Relay earning $105,000 per year. Devin received a separation agreement on August 17, 2026, the same day the company announced it was cutting 100% of staff. The rest of this guide walks through what federal and state law gives Devin, and where Devin has room to ask for more.

What did Relay actually disclose about this layoff?

On August 17, 2026, Relay announced a workforce reduction affecting 100% of staff. The layoff was reported on the public layoffs tracker maintained at layoffs.fyi. Relay has not disclosed the exact headcount affected, and no SEC Item 2.05 filing has been identified in the public record as of this writing. Low confidence Without a formal regulatory filing, the primary public documentation remains the third-party report of the event.

Because no official company filing is available, Relay employees should request a copy of any WARN Act notice the company filed with the applicable state dislocated-worker unit. The federal Department of Labor publishes a guide explaining what that notice must contain and how workers can obtain it. [1]

Does the federal WARN Act apply to a 100%-of-staff cut?

The Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more full-time workers to provide 60 calendar days' written notice before a plant closing or mass layoff. [2] A "plant closing" under the statute means a permanent or temporary shutdown of a single site of employment that results in an employment loss for 50 or more employees during any 30-day period. [2] A full-company shutdown that eliminates every position meets this definition if the site employs at least 50 people.

When an employer fails to provide the required 60 days of notice, each affected employee is entitled to back pay and benefits for every day of the shortfall, up to the full 60 days. [3] The back-pay remedy is calculated at the employee's final rate of pay or the average rate over the preceding three years, whichever is higher.

Use the severance calculator to run your own numbers based on your salary and notice period.

Does New York's mini-WARN law add extra protections?

Several states impose stricter notice requirements than the federal WARN Act. If Relay operated in New York, the New York State WARN Act would be directly relevant. [4] New York requires 90 days' advance notice, compared with the federal 60 days, for covered plant closings, mass layoffs, relocations, and certain work-hour reductions. [4] The New York threshold is also lower: employers with 50 or more employees must comply, versus 100 under federal law. [4]

The table below summarizes states with mini-WARN laws that exceed the federal standard.

If you worked at a Relay office outside New York, check whether your state has its own mini-WARN overlay. The WARN Act calculator page covers the federal framework in detail.

How does the OWBPA waiver timeline work for workers 40 and older?

The Older Workers Benefit Protection Act (OWBPA) sets strict rules for any waiver of age-discrimination claims. [5] When a waiver is offered as part of a group layoff (as with Relay's 100% cut), every worker aged 40 or older must receive at least 45 calendar days to consider the agreement. [5] After signing, the worker has 7 additional calendar days to revoke the waiver. [5]

The employer must also disclose, in writing, the job titles and ages of all individuals eligible for the program and those selected for the program. [6] A waiver that omits any of these elements is not "knowing and voluntary" under the statute and is generally unenforceable as to age-discrimination claims. [6]

For a broader explanation of waiver timing, see our guide on how to negotiate severance.

How does severance pay interact with unemployment insurance?

State unemployment insurance (UI) rules vary on whether a lump-sum severance payment delays or offsets weekly benefits. Low confidence No verified public-record source was identified for the specific interaction rules in Relay's operating state as of this writing. In general, many states allocate lump-sum severance across the weeks it is designed to cover, which can delay the start of UI benefits. Other states disregard severance entirely for UI purposes.

Relay employees should file for unemployment benefits on their state's DOL website as soon as possible after separation. Filing early protects your claim date even if severance payments temporarily delay the first check. The insights on severance taxation post covers the tax side of that same payment.

What terms can a departing Relay employee actually negotiate?

Because Relay needs signed releases to shut down cleanly, departing workers have more bargaining power than they often assume. While no public-record source prescribes specific negotiation terms, the categories below reflect standard areas of a separation agreement that an employee can push back on. Low confidence

Cash multiple. Severance is commonly expressed as a number of weeks per year of service. You can ask for a higher multiple, especially if the WARN notice was short and the company owes back pay. Framing your ask around the WARN shortfall gives it a statutory anchor.

Healthcare continuation. COBRA coverage can cost $600 to $2,000 per month for a family plan. Ask the employer to pay the COBRA premium for a defined period rather than receiving a lump-sum equivalent, which gets taxed.

Equity treatment. If you hold unvested stock options or RSUs, request accelerated vesting or an extended exercise window. The standard 90-day post-termination exercise window is a contract term, not a legal requirement.

Reference language. Ask for a written commitment on the reference the company will provide. A neutral "confirm dates and title" policy protects both sides.

Outplacement. Some employers will fund career-coaching services. The cost to the company is low; the value to you can be high if you use it.

Use the severance tax calculator to model how a lump sum versus installment structure affects your after-tax outcome.

What concrete steps should Relay employees take right now?

1. Read the full agreement before signing anything. You have at least 45 days if you are 40 or older. [5]
2. Request the WARN Act notice. Ask HR or your state's rapid-response team for the notice Relay filed. The DOL's worker guide explains what it should contain. [1]
3. Calculate your WARN shortfall. If you received fewer than 60 days' notice (or 90 days in New York), compute the back pay the company owes. [2] [4]
4. File for unemployment insurance immediately. Filing early protects your claim date regardless of severance timing.
5. Consult an employment attorney. Many offer free initial consultations. An attorney can review whether the waiver meets OWBPA requirements. [6]
6. Run your numbers. The severance calculator gives you a baseline estimate in under two minutes. Compare it against the offer before you negotiate.
7. Do not let the deadline pressure you into a bad deal. The consideration period exists precisely so you can take your time. Signing on day one gains you nothing.

For more on how WARN Act penalties are calculated, read our WARN Act explainer.

Frequently asked questions

Does the WARN Act apply if Relay has fewer than 100 employees?

The federal WARN Act applies to employers with 100 or more full-time workers, or 100 or more employees who work at least 4,000 hours per week exclusive of overtime. [2] Relay has not disclosed its headcount publicly. If Relay fell below 100 employees, the federal statute would not apply, but a state mini-WARN law with a lower threshold (50 employees in New York) could still require notice. [4] Workers should ask HR for the company's headcount on the date the layoff was ordered.

How long do workers 40 and older have to review a severance waiver?

Under the Older Workers Benefit Protection Act, workers 40 and older must receive at least 45 days to consider a waiver offered as part of a group layoff, plus 7 days to revoke after signing. [5] For individual (non-group) terminations, the consideration period is 21 days. Relay's 100%-of-staff cut is a group layoff, so the 45-day period applies. Any waiver that shortens these statutory deadlines is generally ineffective under federal law. [5]

What back pay is owed if Relay gave no WARN notice?

Each affected employee is entitled to back pay for every day of the 60-day notice shortfall, calculated at the employee's final regular rate of pay. [3] The employer also owes benefits under an employee benefit plan, including the cost of medical expenses incurred during the shortfall period. [3] An employee earning $100,000 annually with zero notice would be owed approximately $16,438 in back pay, based on a 365-day year, plus benefits costs. [3] Courts can also award reasonable attorney fees.

Can I negotiate a better severance package during a company shutdown?

Yes. An employer winding down operations needs signed releases to close cleanly, which gives departing workers bargaining room. Low confidence Common areas to negotiate include the cash multiple (weeks per year of service), COBRA premium coverage, accelerated equity vesting, extended stock-option exercise windows, and written reference commitments. Framing your request around any WARN Act back-pay shortfall strengthens your position because the company already owes that money by statute. [3]

Should I file for unemployment before or after signing a severance agreement?

File for unemployment as soon as you are separated, regardless of whether you have signed. Filing early establishes your claim date and protects your place in the queue. Whether severance delays your first UI payment depends on your state's rules. Many states allocate a lump sum across the weeks it is designed to cover, which can push back the start of weekly benefits. Filing early costs nothing and ensures you do not lose weeks of coverage.

Where can I find the official WARN notice Relay filed?

Employers must send WARN Act notices to the state's dislocated-worker unit (sometimes called the rapid-response team) and to the chief elected official of the local government. [2] In New York, WARN notices are published on the Department of Labor's website. [4] You can also ask Relay's HR department directly for a copy. The DOL's worker guide explains every element a valid notice must include. [1]

New York WARN coverage detail

New York WARN applies to private businesses with 50 or more employees in New York State, subject to the statute's detailed coverage rules. [4]

Sources & verification