Read today about the “WARN Act” that requires employers to give 60 days notice on mass layoffs. At most tech companies, it seems like access is cutoff pretty immediately - does this mean employers are required to keep you on payroll for 60 days? Does your visa continue to be active with the company for those 60 days (eg on an h1b do you have the 60 day notice period PLUS the 60 days you’re allowed to be unemployed to find a new job?). #layoff #visas
They give 2 months severance for that.
Severance isn’t a legal requirement in the US. Companies that pay severance typically make you sign something stating you won’t take unemployment benefits. They aren’t doing this out of kindness lol
You don't sign something saying you won't take unemployment. You sign something saying you want malign the company or sue. The state determines if you're eligible for unemployment or not
The requirement is a general warning not a specific one. They just need to say "we are planning a reduction is workforce over the next quarter". No requirement to name names or give affected individuals 60 days notice.
What is the definition of a mass layoff?
they are paying for two months so you are officially employed for two months. They just don't want you to do any work for them immediately. They are not breaking laws. You think they are stupid?
This is why they give at least two months severance. For violating the warn act, companies are liable and can be fined 2 months salary at minimum
This is an old post but I’ve the exact same question OP has asked in the second part of his post - does an H-1B holder in essence get 2 mo + 2 mo before going out of status? I understand that severance pay should be for first 2 months only but since they are on the payroll till 2 mo after effective terminate date, does this mean they get 4 months to find a new opportunity?
Depends on what the company does. Some companies keep you on the payroll officially for all or part of your severance. Some just pay you out and cut you off. Question is when you officially end your employment with the company.
@Intel - speaking of recent layoffs at Twitter and Stripe, fwik, they have both informed employees that they will be on payroll till 2 months after effective termination. Under this scenario, do impacted H-1s in these companies have 4 months to seek a new opportunity?
Not if they just violate it. Some of these companies don't consult lawyers the right way, some would rather just pay the fine and don't care about you.