Current Events > About to be laid off. What's next?

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Ive been at my job for about 3 years. In the 11 years in my life Ive been working, this is my 6th job but its also my second longest and my favorite job (Ive had 3 jobs where I lasted a few months, 1 for a year, and 1 for 6 years). The actual work is easy, the co workers are for the most part chill, and upper management is extremely lenient. The hours are great, the pay was amazing. I genuinely had fun at my job.

I found out that my entire department (14 people) will be informed next week that we are getting laid off in September due to our work being outsourced to another country for what I assume is cheaper labor. I dont know what the severance package is yet.

Ive never been laid off before. So I have a few questions.

1. its best to get laid off rather than quit so that I can get unemployment, correct? I live in California.
2. I do have a personal side business as an independent contractor. Would that be a factor into me getting unemployment?
3. I do have more than a year worth of expenses in emergency savings. I have no family, live on my own, and own my own house so Im financially stable. Should I just use a couple of months traveling/doing whatever before I start looking for a new job?

Admiral_Zero posted...

its best to get laid off rather than quit so that I can get unemployment, correct? I live in California.

Contrary to public belief, you can get unemployment even if you resign, it's just more difficult.

Admiral_Zero posted...

I do have a personal side business as an independent contractor. Would that be a factor into me getting unemployment?

I believe if you make enough money that you have to file taxes for your side gig, that would be a serious problem for unemployment benefits.

Admiral_Zero posted...

I do have more than a year worth of expenses in emergency savings. I have no family, live on my own, and own my own house so Im financially stable. Should I just use a couple of months traveling/doing whatever before I start looking for a new job?

Start looking now. Job offers may take months to get even after interviews.

i can answer the first question..

layoffs are much more easy to apply for unemployment rather than a firing. can agree with firing being much harder some states don't pay out for being fired.

Also, would my investments factor in when it comes to unemployment pay?

Tyranthraxus posted...

Contrary to public belief, you can get unemployment even if you resign, it's just more difficult.

I believe if you make enough money that you have to file taxes for your side gig, that would be a serious problem for unemployment benefits.

Start looking now. Job offers may take months to get even after interviews.

All of this is accurate.

Admiral_Zero posted...

Also, would my investments factor in when it comes to unemployment pay?

They don't.

Do you have an employer sponsored retirement plan like a 401k? Gonna have to do something with that too.

Get a good job.

HudGard posted...

Do you have an employer sponsored retirement plan like a 401k? Gonna have to do something with that too.

I do via Trowe Price. I plan on moving it to Fidelity.

The last time I got laid off, I went to Disney World.

Tyranthraxus posted...

I believe if you make enough money that you have to file taxes for your side gig, that would be a serious problem for unemployment benefits.

I probably pull around 10k in profit a year from it, after all expenses and overhead is paid off.

Also, does unemployment affect my taxes in any way?

Admiral_Zero posted...

Also, does unemployment affect my taxes in any way?

Make sure when you apply that you have it set up get taxes taken out of each payment. Otherwise it won't and you'll have to pay all the tax at once next year when you file your income taxes.

Don't know about your state but caps on unemployment are pretty damn low. Much better off just finding a new job asap.

I hope things work out well for you.

Update:

We are all getting laid off at the last day of September. We will be getting 6 weeks severance in addition to all PTO paid out. In addition everyone is getting a 2 dollar raise until the layoff.