What to do if you are laid off due to COVID - 19

COVID-19

Shelter In Place

Lay Offs

Now what?

With increasing Shelter in Place orders in the US due to the COVID -19 pandemic, a lot is changing as more residents stay home to limit the virus’ spread. People are losing their jobs and more and more businesses are closing. Five of my friends have been laid off unexpectedly and are unsure of what to do next. LinkedIn feeds are now flooded with posts relating to coronavirus layoffs, furloughs and reduction in work hours. With my job being in talent acquisition, putting people to work is what drives me and it’s been hard watching people being put out of work. I wrote this with the hope that it will help those that have been affected and are panicking, to know there’s help out there to keep you afloat during these uncertain times. 

1.   Government Programs

File for Unemployment

The Unemployment Insurance program pays out cash benefits to workers who have lost their jobs through no fault of their own to provide temporary financial assistance as they look for a new position. This program is funded by payroll taxes paid by employers to state and federal governments. To qualify for the unemployment cash benefits, one must be totally or partially unemployed, unemployed through no fault of their own, physically able to work, available for work, ready and willing to accept work immediately and actively looking for work. To file for unemployment benefits you will need to apply directly to your state’s website unemployment website. You can find your state’s unemployment website via the US department of labor website https://www.careeronestop.org/.

Stimulus check

In addition to Unemployment Insurance, the newly signed 2 Trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide financial aid to families affected by the COVID-19 pandemic and facing unemployment, partial unemployment, or inability to work. Based on 2019 tax returns, the CARES Act will be sending a $1,200 to individuals earning up to $75,000, couples earning up to $150,000 will receive $2,400 and eligible families will receive an additional $500 for each child. The amount decreases with higher income. Singles who made more than $99,000 and couples who made more than $198,000 will not be eligible for the stimulus check. For those eligible for the stimulus check and filed their taxes recently, there is no action needed. The IRS will send you a check automatically via the direct deposit or mail information on your last tax return. For those that qualify for the check but haven’t filed their taxes recently, the IRS has created a “Non-Filers” portal on their website https://www.irs.gov to enable one to enter their mailing address and banking information. The IRS began automatic payments this week and those who have their direct deposit information updated will receive their stimulus payment the fastest.

Pandemic Unemployment Assistance (PUA)

The CARES Act includes a new program called Pandemic Unemployment Assistance (PUA) which will be sending an additional $600 per week to unemployed workers who became unemployed as of March 27 (the day the CARES Act was signed) through July 31. PUA expands cash benefits to workers who were previously ineligible to unemployment benefits, including Americans who are self-employed, independent contractors, freelancers, “gig economy” workers, and those who do not have sufficient work history to qualify for regular benefits.

To access PUA benefits, you will need to apply directly to your state’s website unemployment website. You can find your state’s unemployment website via the US department of labor website here https://www.careeronestop.org . You must be able to prove you are unemployed, partially employed or you’ve lost work due to the pandemic. Some the reasons that qualify one for PUA benefits include but are not limited to; being diagnosed with COVID - 19, being ordered by a health official to quarantine, providing care for someone diagnosed with corona virus, caring for a child who can’t go to daycare or can’t attend school due to schools being closed, being scheduled to start a new job that’s currently closed or quitting a job due to COVID-19 related illnesses.

2.   Health Insurance

With COVID-19 pandemic, it’s extremely important to have health insurance coverage. Testing for the virus is free whether you have insurance or not. However, if you are diagnosed with COVID-19 uninsured and are hospitalized you can end up with a hefty hospital bill. A recent study by the America’s Health Insurance Plans says the average cost to treat a hospitalized patient with the virus and requiring intensive care is $30,000.

Medicaid

If you recently lost your job and health insurance due to COVID-19, you might be eligible for Medicaid. Medicaid is a program funded by the federal and state governments to help provide free or low cost health coverage for Americans based on income level and family size. If you never had insurance and lost your job, you might still qualify for Medicaid - check your eligibility via https://www.healthcare.gov website. Furloughed employees should still be able to access employer’s health insurance coverage.

 Obamacare

Under the Affordable Care Act (ACA), Obamacare provides affordable and quality healthcare insurance for Americans. Losing health insurance coverage through your job or a spouse’s job is a qualifying event that makes one eligible to enroll for Obamacare.You have 60 days from the day you lose your job to apply for Obamacare. You check eligibility via https://www.healthcare.gov. 

COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a health coverage program that allows employees to continue with the same coverage if you lose your job or if your hours are reduced for up to 18 months. Cobra can be expensive, as you have to pay the full premium for your coverage as your employer will no longer be paying their portion of the premium costs. You need to reach out to your employer’s insurance directly after losing your job to notify them and get started. You have 60 days to enroll after losing your job or your hours being reduced. Your first premium will be charged after 45 days and you are allowed 30 days grace period if you fail to pay your premium. After that your insurance will be terminated.

Most employers typically pay premiums at the beginning of the month so you might still be eligible to use your coverage after losing your job depending on what time of the month you are terminated. Check with the insurance provider to see how long you can use employer’s benefits after you lose your job.

3.   Job search

If you have been laid off, furloughed or your hours have reduced due to the pandemic, there are still companies out there that are hiring. Candor has a real-time up to date list of companies that are still hiring on their website https://candor.co/hiring-freezes .

Your resume

The first step to starting your job search is updating your resume ensuring all the responsibilities you handled in your latest role are included. In addition to that, accurately date all your previous employment, include your contact information (cell phone number and email address), your highest level of education and your software skills where relevant. This information will help your resume get noticed by recruiters and enable them to reach to you easily.

LinkedIn profile

If you haven’t already, create a LinkedIn profile including your work experience and educational background and be sure to enable the function “Let recruiters know you’re open to new opportunities” (located in your privacy settings).This allows your profile to be ranked in your job title category and allows recruiters to find you easily. Search LinkedIn jobs to see if there are any opportunities that align with your background, what you are looking for and apply directly to the positions. Be proactive and send direct messages to hiring managers on LinkedIn who have open positions and submit your resume directly, and include a brief introduction about yourself and why you feel you might be a good fit for the position.

 Job boards

Be sure to check job boards like Indeed, Career Builder, Monster and apply directly to any positions that might be of interest to you. Tailor your resume to what’s most relevant for a specific position. Do not send a generic resume to every job you are interested in. This is a common mistake jobseekers make.

 Networking

Let your ex-coworkers, friends and family know about your job search to see if they might know anyone that’s hiring for any positions you’d be interested in.

 4.   Mental Health

Getting laid off can be overwhelming and stressful but there are a few ways to cope with the emotional effects.

 Support system

Reach out to friends and family who care about you or a therapist to let them know what’s going on. Their listening ear, support and guidance will be very helpful in helping you cope with the new reality.

 Physical Exercise

Studies have shown correlation between physical activity and mental health. Taking care of your body and exercising is a great stress reliever and gives you a sense of control over your body and life. Doing solo exercises at home or taking virtual workout will help improve your mood, improve self-confidence and can also I help improve your sleep, which is often disrupted by stress.

5.   Finances

As soon as you get laid off, take a look at your finances and your budget and eliminate unnecessary expenses.

Budget

Categorize your expenses in 3 categories; (1) Needs – these are expenses you need in order to live (e.g. housing, groceries, utilities etc.); (2) Wants- these are expenses that enhance your life but you can go without them – such as gym membership, dining out, shopping etc.; and (3) Savings; this is the money you set aside e.g. emergency fund, 401(K) etc. Once you categorize your expenses, cut unnecessary expenses and zone in on the expenses under your Needs category and check to see how long your emergency fund and or any government financial assistance will last.

Freelance gigs

You might also want to start looking for a Plan B to generate some income - websites such as Upwork and Fiverr provide opportunities for freelance services if you have skills in graphic design, programming, digital marketing etc.

Final thoughts

Getting laid off during these unprecedented times is tough. Tap in to the resources available to you now as you figure out a plan on what to do next. Remember, it will all be ok in the end!

GOOD LUCK!