Losing your job can feel upsetting, confusing, and overwhelming, especially if you feel an employer had no reason to fire you. Even if you expected a dismissal, it can feel like a huge shock to the system and may cause you to worry about your future and finances.
Once you’ve had time to process the news, you must take various steps to ensure you have received the money you deserve. Continue reading to learn how to protect your income after being fired.
Review Your Final Pay
The first step is to review your final pay from your former company. Double-check your paycheck to ensure you’ve received payment for every hour you’ve worked, as well as any unpaid overtime and/or sales commissions.
Different states will have different requirements for final salaries. For instance, many states require companies to provide payment by the next payday, while others may require immediate payment.
If an employer has offered a severance package for you to walk away from the job, don’t be afraid to take some time to review their offer before signing on the dotted line. If you’re unhappy with the package, you could potentially negotiate its terms.
Most states provide 21 days for an employee to consider a severance offer, and you could potentially renegotiate additional pay or extra benefits.
Take Legal Action if Needed
If you suspect wrongful discharge or want to recover unpaid sales commissions or overtime compensation, don’t hesitate to take legal action against your former employer.
For instance, if you believe your firing was due to discrimination, retaliation, or that the contract was breached, consider pursuing a workplace dispute. An experienced employment attorney like Baird Quinn can effectively defend your civil rights and help you navigate complex federal and state laws.
File for Unemployment
After dismissal, it is a smart decision to immediately file for unemployment with the Department of Labor. You’ll automatically qualify for the benefit if you lost your job due to your performance or company layoffs. However, if you were fired for gross misconduct, such as stealing from the business, you may be denied, but you’re allowed to appeal.
Don’t Use Your 401(k)
If you had a 401(k) with your former employer, don’t be tempted to touch the funds right away. Withdrawing the funds could lead to a 10% penalty and income tax, impacting your finances. You always have the option to roll the 401(k) funds over into an IRA at a later date.
Improve Your Resume
Take the time to improve your resume to land a new role. Many modern companies are valuing skills and certifications over job titles nowadays. For this reason, you must clearly state your demonstrable and transferable skills, qualifications, and certifications. In today’s modern world, it’s essential to include specific keywords in your resume, as AI is now used by many organizations to screen candidates. If you have a LinkedIn profile, turn on the “Open to Work” setting to encourage recruiters and companies to reach out. If you don’t wish to publicly promote your unemployment, you can set it to “only to recruiters.”
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