Is it necessary to provide a notice to separated employees in the United States?
What are federal separation notice requirements?
Do some states have their own separation notice regulations?
If you’re struggling with answers to these questions, don’t worry, we’ve got you covered! As a US employer, you must be familiar with every relevant labor regulation in the country, and that also includes separation notice rules.
So, in this guide, we’ll explore:
*Note: The information regarding separation notice requirements laws and regulations by state has been checked and updated for 2024.
Table of Contents
Separation refers to the termination of a working relationship between an employee and an employer. In general terms, a separation notice is a legal form stating the end of a working relationship between an employer and an employee.
In the US, separation notices are typically connected to unemployment insurance (UI) benefits. The UI program provides financial assistance to employees who are unemployed “through no fault of their own”. The exact rules for accessing insurance depend on the state.
Certain states require employers to inform workers of the steps necessary for accessing those benefits or provide actual forms workers would need to fill in to receive UI.
Depending on the state, information about unemployment insurance could be written on a poster displayed in the workplace. Alternatively, some states require employers to fill out and distribute separation forms to separated employees.
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The US law doesn’t contain any general legal requirements regarding separation notices. Thus, each state has the right to enforce its own separation notice requirements.
However, there are 2 exceptions regarding separation notice requirements during employment separation:
The WARN Act protects workers in the event of plant closings and mass layoffs. For these types of layoffs, employers are required to provide a notice of 60 calendar days.
The Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) covers private sector group health plans. According to the US Department of Labor, it applies to employers who had 20 employees that worked on more than “50% of its typical business days in the previous calendar year.”
In essence, COBRA offers a continuation of health coverage and is available in the following events:
If a company’s COBRA plan administrator (a person responsible for ensuring that a business complies with COBRA law) is a third party, employers must notify the administrator of the employee separation within 30 days. The plan administrator then has to notify the employee of their COBRA rights within 14 days. In case the employer is the plan administrator, they have 44 days to issue the COBRA election notice to the employee.
Every state has the right to enforce its own separation requirements.
Currently, 22 states have specific employment separation requirements for employers. Some compel employers to fill in separation forms, while others require employers to only inform workers of their right to unemployment coverage.
The table below shows states with specific employee separation notice requirements as well as the exact rules and links to the forms employers must provide in the event of employment separation:
| State | Separation notice requirements | Qualified employees | Separation notice or separation form |
|---|---|---|---|
| Alabama | Upon separation, employers are required to provide separating employees with a Notice of Availability of Unemployment Compensation and other unemployment benefits in the form of a letter, text message, email or a flier. | All separating employees. | Notice of Availability of Unemployment Compensation |
| Alaska | Employers must provide separating employees with the employment benefits availability notice within 7 days after their last workday. | All separating employees. | Notice to Employees |
| Arkansas | Employers are required to provide separating employees with a notice listing available unemployment benefits. | All separating employees. | Notice to Employee |
| Arizona | Upon separation, employers have to provide a printed statement with information about filing for unemployment benefits. | All employees who become unemployed. | UIB-1241A |
| California | Employers must provide immediate written notice along with two pamphlets: DE 2320 and DHCS-9061 (if covered). | All employees who are discharged, laid off, or on a leave of absence. | Notice to employee as to change in relationship |
Have you ever wondered what are the most common reasons for employment separation? What about the steps an employer has to take when a worker departs?
We’re answering the most common separation notice questions!
Employment separation comes in many forms. The most popular reasons for separation are:
The process of employment separation depends on various factors, including:
Moreover, if an employee is required to put in two weeks’ notice, the process of separation is usually longer.
In most cases, the separation includes:
The length of this process depends on the exact steps the state and the employment contract specify. In some states with compulsory separation notice, such as Massachusetts, employers may have up to 30 days to provide the notice. This extends the duration of the separation process.
The employment separation process depends on various factors.
But, in most cases, employers go through a few general steps when a worker departs. To make things a bit easier for you, here is an employer separation checklist:
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You can ensure that you follow every essential step in an employee separation process by creating a to-do list. Read the following text to find the best to-do list method for your needs:
As separation notice is not required in most states, you likely won’t need to provide the notice when you file for unemployment insurance. As for the states with obligatory separation notice, the steps for receiving unemployment insurance depend on that state’s specific rules.
Some employment separation notices only contain steps for filing the insurance claim. In that case, you likely won’t have to provide the notice upon submitting your request. In other states, employers are required to give you an exact insurance form that you have to submit when filing for insurance.
You can read more about the steps you have to go through in each state on the US Department of Labor website.
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Hopefully, our separation notice guide for 2024 has helped you better understand the rules and regulations regarding employment separation in the United States.
To get more data on labor law regulations for each state:
Please bear in mind that this article was updated and checked in Q1 of 2024. Thus, it may not include changes introduced after it was published.
We strongly advise you to consult the appropriate institutions and/or certified representatives before acting on any legal matters.
Clockify is not responsible for any losses or risks incurred should this guide be used without legal guidance.
Remaining up to date with all the relevant regulations may be a time-consuming task, but if you leave keeping track of your time in the hands of a time management app such as Clockify, you may quickly find out where you can save an hour or two in the process.
Sources for the table:
