Losing your job can be overwhelming, but if you have been laid off in Kentucky, you have rights. Knowing them can help you protect your finances, your future, and your peace of mind. Whether your layoff was part of a company-wide reduction or a targeted downsizing, here is what you need to know to navigate the process with confidence.
The employment attorneys at Abney Law will help you protect your rights, and even seek compensation if you were wrongfully terminated from your employment.
1. Understand the Difference Between Layoff and Termination
In Kentucky, a layoff typically refers to a job loss due to business reasons, such as restructuring, downsizing, or lack of work, not because of employee misconduct. Unlike termination for cause, layoffs may entitle you to certain benefits and protections under state and federal law.
2. Request a Written Explanation
Employers in Kentucky are not legally required to provide a written reason for a layoff, but requesting one can clarify your employment status and help you determine eligibility for unemployment benefits or legal recourse. If the layoff seems discriminatory or retaliatory, documentation will be key.
3. Review Your Final Paycheck and Accrued Benefits
Kentucky law requires employers to pay all earned wages by the next regular payday following separation. This includes:
- Regular wages
- Accrued but unused vacation (if company policy treats it as earned wages)
- Commissions or bonuses due
If your employer fails to pay on time, you may file a wage claim with the help of a licensed Kentucky attorney.
4. Apply for Unemployment Benefits Promptly
Kentucky’s Office of Unemployment Insurance (OUI) administers benefits for eligible workers. To qualify, you must:
- Be unemployed through no fault of your own
- Have earned sufficient wages during your base period
- Be actively seeking work
You can apply online or by phone.
5. Review Your Severance Package (If Offered)
Kentucky law does not require employers to offer severance pay, but if they do, review the terms carefully. Severance agreements may include:
- Waivers of legal claims
- Non-compete clauses
- Confidentiality provisions
Before signing, consider consulting an employment attorney, especially if the agreement limits your future employment or waives rights under federal laws like the WARN Act or Title VII.
6. Know Your Rights Under the WARN Act
If your employer has 100 or more employees and lays off 50 or more workers at a single site, they may be required to provide 60 days’ advance notice under the federal Worker Adjustment and Retraining Notification (WARN) Act. Failure to comply may result in penalties and back pay.
7. Explore Health Insurance Options
If you had employer-sponsored health coverage, you may be eligible for COBRA continuation coverage. Kentucky also participates in the federal Health Insurance Marketplace, where you can compare plans and apply for subsidies. Losing your job qualifies as a “life event,” triggering a special enrollment period.
8. Consider Legal Action If You Suspect Wrongful Layoff
While layoffs are generally legal, they cannot be based on discrimination, retaliation, or violations of public policy. If you believe your layoff was unlawful, you may have grounds for a claim under:
- Title VII of the Civil Rights Act
- The Americans with Disabilities Act (ADA)
- The Kentucky Civil Rights Act
Consult a Kentucky employment attorney to evaluate your options.
9. Update Your Resume and Start Networking
Once you have addressed the legal and financial aspects of your layoff, focus on your next steps. Update your resume, reach out to professional contacts, and explore job boards like Kentucky Career Center, Indeed, and LinkedIn. Many laid-off workers qualify for free career services through state programs.
Work with a Kentucky Employment Lawyer If You Were Laid Off
Being laid off is never easy, but Kentucky workers have rights and resources designed to help them recover and rebuild. From unemployment benefits to legal protections, understanding your options is the first step toward a stronger future.
Let the dedicated employment attorneys at Abney Law review your case. Contact us today for a consultation.