What T-Mobile USA Employees Should Know About Their 2026 Severance Package

When a large employer announces layoffs, the first question is usually about money: how much severance, when it arrives, and what you sign away to get it. Federal law does not require any company to offer severance pay. What federal law does require is adequate notice before a mass layoff and, if severance is offered in exchange for a legal waiver, specific timelines so workers can review the deal before signing. Understanding those timelines is the difference between accepting a lowball offer under pressure and negotiating from an informed position.

To see what this looks like in practice, take Danielle, a network engineer at T-Mobile USA earning $105,000 per year. Danielle learned on August 12, 2026, that her role was among approximately 113 positions being eliminated. She has a severance agreement on her kitchen table and a clock ticking. The rest of this guide walks through exactly what Danielle (and every affected T-Mobile worker) should evaluate before signing.

What did T-Mobile USA disclose about the August 2026 layoff?

T-Mobile USA announced, via a WARN notice filed on August 12, 2026, that it will lay off approximately 113 employees from its Irving, Texas office starting October 6, 2026.[1] The company has not publicly disclosed what percentage of its workforce these cuts represent, nor has it filed a public SEC Item 2.05 disclosure as of this writing. Low confidence The primary public reporting comes from financial news coverage of the announcement.

Because T-Mobile has not released the specific severance formula, affected employees should review the individual separation agreement they receive. Every term in that document, from the cash multiple to healthcare continuation, is a starting point for negotiation, not a final offer.

Does the federal WARN Act apply to a layoff of 113 workers?

The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time employees to provide at least 60 calendar days' written notice before a "mass layoff" or plant closing.[1] A mass layoff under WARN means a reduction of at least 50 employees at a single site of employment during any 30-day period, provided those 50 workers constitute 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]

T-Mobile USA employs well over 100 people nationwide, satisfying the employer-size threshold. Whether the 113 affected roles trigger WARN depends on how many workers are cut at each individual site. If 50 or more full-time employees lose their jobs at a single T-Mobile location within 30 days, and those 50 represent at least one-third of that location's workforce, WARN notice is required.[1] If the cuts are spread thinly across many offices, the per-site threshold might not be met.

When WARN applies and the employer fails to provide 60 days' notice, affected employees are entitled to back pay and benefits for each day of the notice shortfall, up to 60 days.[2]

Which state mini-WARN laws could give T-Mobile workers extra protection?

Several states impose stricter layoff-notice requirements than the federal WARN Act. T-Mobile USA has offices and retail locations across multiple states. Workers should check whether their work site falls in a state with a mini-WARN statute that lowers the employee threshold or extends the notice period.

New York's WARN Act, for example, applies to certain business closures and mass layoffs by employers with 50 or more full‑time employees when at least 25 employees who represent at least one‑third of the workforce, or 250 employees, are affected at a single site, a much lower bar than the federal mass‑layoff threshold.[3] New York also requires 90 days' notice rather than the federal 60.[4]

Low confidence State thresholds for California, Illinois, New Jersey, and Wisconsin are drawn from publicly available state statutes; always verify the current text of your state's law, as amendments occur.

If Danielle works at a T-Mobile office in New York, the state's lower threshold of 25 employees and longer 90-day notice window would apply even if the federal WARN Act does not.[4]

How does the OWBPA protect T-Mobile workers who are 40 or older?

The Older Workers Benefit Protection Act (OWBPA), codified at 29 U.S.C. § 626(f), sets mandatory requirements for any waiver of age-discrimination claims included in a severance agreement.[5] Nearly every corporate severance agreement includes such a waiver.

For an individual termination (not part of a group layoff program), the employee must receive at least 21 days to consider the agreement.[5] When two or more employees are terminated as part of a group reduction, each worker 40 or older must receive at least 45 days to consider the agreement, plus a written disclosure listing the job titles and ages of all individuals selected and not selected for the program.[6]

After signing, every worker 40 or older has 7 days to revoke the agreement, and the severance payment cannot begin until that revocation period expires.[5]

How does a T-Mobile severance payment affect unemployment insurance?

Severance pay and unemployment insurance interact differently in every state. The U.S. Department of Labor's guidance allows states broad discretion in deciding whether severance delays or reduces unemployment benefits.[7]

Pennsylvania, for example, treats severance as a deductible payment that offsets unemployment benefits dollar-for-dollar during the weeks the severance covers.[8] Other states, like California, do not reduce unemployment benefits based on severance pay at all. T-Mobile employees should check their specific state's rules before assuming they can collect both simultaneously.

Key factors that determine the interaction:

• Lump sum vs. weekly payments. A lump-sum severance is sometimes allocated across weeks for benefit-reduction purposes.
• Continuation of benefits. If the severance agreement states the employee remains on payroll through a specific date, unemployment eligibility typically starts only after that date.
• Signing timeline. Filing for unemployment immediately, even before the severance agreement is finalized, protects the claim date in most states.

Danielle should file her unemployment claim in her state as soon as she is separated, regardless of whether her severance is still being negotiated. Filing early preserves her claim date.

What terms can a departing T-Mobile employee negotiate?

A severance offer is a contract proposal, not a mandate. The EEOC's guidance on severance waivers confirms that employees have the right to negotiate the terms before signing.[6] Here are the terms worth pushing on:

Cash multiple. Many large employers start at one to two weeks of base pay per year of service. Danielle, with six years at T-Mobile and a $105,000 salary, might see an initial offer of six to twelve weeks of pay ($12,115 to $24,231 gross). Asking for a higher multiple is standard, especially when the OWBPA review window gives time to counter.

COBRA and healthcare. Under COBRA, when a qualifying event like a job loss occurs, T-Mobile must offer Danielle the opportunity to elect continued group health coverage, which for most employee terminations can last up to 18 months, with the employee typically paying the full premium plus up to a 2% administrative fee.[9] Negotiating employer-subsidized COBRA for three to six months can save thousands of dollars.

Equity treatment. If Danielle holds unvested RSUs or stock options, the default treatment upon termination is usually forfeiture. Requesting accelerated vesting or an extended exercise window for vested options is a reasonable ask, especially in a reduction-in-force where the company initiated the separation.

Reference language. A neutral or positive reference letter, agreed upon in writing as part of the separation agreement, removes ambiguity when future employers call.

Non-compete and non-solicitation scope. If the severance agreement includes restrictive covenants, Danielle should negotiate the duration, geographic scope, and industry definition. Several states (including California) refuse to enforce most non-competes entirely.

For a personalized estimate of what your severance package could look like, try the layoff calculator or the severance tax calculator to understand the after-tax impact.

What concrete steps should T-Mobile employees take right now?

If you received a separation agreement this week, here is a day-by-day framework:

1. Day 1: Read, do not sign. Read every page of the agreement. Note the consideration deadline (21 or 45 days). Note the revocation period (7 days).[5]
2. Days 2 through 5: Gather documents. Collect your most recent pay stubs, benefits summaries, equity grant letters, and any WARN notice you received.
3. Days 5 through 10: Consult an employment attorney. Many offer free initial consultations. Bring the separation agreement and your OWBPA disclosure.
4. Days 10 through 20: File for unemployment. File in your state of residence. Do not wait for the severance to be finalized.
5. Days 15 through 40: Negotiate. Submit a written counter-proposal covering cash, COBRA subsidy, equity, and reference language.
6. Day 45 (or 21 for individual terminations): Decide. Sign only after you have reviewed the final terms with counsel.
7. Days 46 through 52: Revocation window. You have 7 days after signing to change your mind. The agreement is not binding until day 8.[5]

For more on how severance interacts with the WARN Act, see our WARN Act calculator. For negotiation strategies, read our guide on how to negotiate severance. And for a broader view of layoff trends, explore our insights library.

Frequently asked questions

Does T-Mobile USA have to offer severance pay by law?

No federal statute requires private employers to offer severance pay. Severance is a contractual benefit, not a legal entitlement. The WARN Act requires 60 days' notice (or back pay in lieu of notice), which is separate from severance.[1] Some states, like New Jersey, mandate severance-like payments under their mini-WARN statutes. T-Mobile's severance offer is governed by the company's own separation agreement, which employees can negotiate before signing. Check your state's specific requirements by visiting your state DOL website.

How long do I have to review a T-Mobile severance agreement if I am over 40?

Under the Older Workers Benefit Protection Act, employees 40 and older must receive at least 21 days to review an individual separation agreement.[5] When the separation is part of a group layoff (as with T-Mobile's 113-person reduction), the review period extends to 45 days.[6] After signing, every worker 40 or older has 7 additional days to revoke. The employer cannot shorten these periods, and any waiver signed without them is voidable under 29 U.S.C. § 626(f).

Can I collect unemployment benefits while receiving T-Mobile severance pay?

The answer depends on your state. The U.S. Department of Labor permits states to set their own rules on how severance interacts with unemployment insurance.[7] Pennsylvania, for instance, offsets unemployment benefits by the amount of severance received.[8] California does not reduce benefits based on severance. File your unemployment claim as soon as you are separated, regardless of severance status, to preserve your claim date. Your state's DOL website will have the specific offset rules.

What is the WARN Act's employee threshold for T-Mobile's layoff?

The federal WARN Act applies to employers with 100 or more full-time employees, and a "mass layoff" trigger requires at least 50 employees at a single site within a 30-day period (representing at least one-third of the site's workforce), or 500 or more at a single site regardless of percentage.[2] Whether T-Mobile's 113-person reduction meets the per-site threshold depends on how the cuts are distributed across locations. Workers at sites with concentrated cuts should verify whether a WARN notice was filed with the state.

Should I hire a lawyer to review my T-Mobile severance agreement?

An employment attorney can identify whether your agreement complies with OWBPA disclosure requirements, whether the release language is overbroad, and whether the cash offer is below market for your role and tenure.[6] Many employment lawyers offer free 30-minute consultations. The cost of a full review (typically $500 to $2,000) is often recovered many times over through improved severance terms. Given that T-Mobile's layoff of 113 workers likely triggers group-layoff disclosure rules, legal review is especially worthwhile.

What happens if T-Mobile did not provide 60 days' WARN Act notice?

If the WARN Act applies to your site and T-Mobile provided fewer than 60 days' notice, affected employees are entitled to back pay and benefits for each day of the shortfall, up to a maximum of 60 days.[2] Back pay under WARN does not require signing a severance waiver. Employees can pursue WARN claims individually or as a group. The DOL's WARN page provides guidance on filing.

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