Termination Letter in the US
No federal law requires a general written notice of dismissal, but three regimes attach to the letter and the package around it. The WARN Act requires 60 days' advance written notice for larger plant closings and mass layoffs, the Older Workers Benefit Protection Act sets conditions for any release of age discrimination claims, and several states impose their own notice and final pay deadlines. New York requires written notice of the exact termination date and the exact date benefits are cancelled.
Governing law
Notice of individual dismissal is governed by state law. Federal law intervenes only for collective redundancies under the WARN Act and for the validity of releases of statutory claims.
Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2102
What a termination letter has to contain in the US
An employer may not order a plant closing or mass layoff until 60 days after serving written notice on employee representatives or, where there is none, on each affected employee, and on the state rapid response unit and the chief elected local official.
That duty attaches only to an enterprise employing 100 or more employees excluding part-time employees, and only to a closing causing employment loss for 50 or more employees in a 30-day period, or a mass layoff hitting at least 33 percent of employees and at least 50 employees, or at least 500 employees.
A waiver of age discrimination claims is not knowing and voluntary unless the employee is advised in writing to consult an attorney, is given at least 21 days to consider it (45 days for a group exit incentive programme), and has at least 7 days after signing to revoke.
New York employers must notify any terminated employee in writing of the exact date of termination and the exact date of cancellation of employee benefits, in no case more than five working days after the termination.
In California, wages earned and unpaid at the time of discharge are due and payable immediately, while an employee who quits without 72 hours' notice must be paid within 72 hours.
Form, notarisation and registration
A California employer offering a separation agreement must tell the employee of the right to consult an attorney and give not less than five business days to do so, though the employee may sign earlier if that choice is knowing and voluntary.
What catches drafters out
If a California employer wilfully fails to pay final wages on time, the employee's wages continue as a penalty at the same daily rate until paid or until an action is commenced, for up to 30 days.
A California separation agreement may not prohibit disclosure of information about unlawful acts in the workplace, and any provision restricting disclosure of workplace conditions must carry the statutory carve-out sentence or it is unenforceable.
Termination Letter in the US: common questions
- Does US law require a written termination letter?
- Not as a general federal rule. The WARN Act, 29 U.S.C. § 2102(a), requires 60 days' written notice only for a plant closing or mass layoff, and only for employers of 100 or more employees under 29 U.S.C. § 2101(a)(1). New York goes further for individual dismissals: Labor Law § 195(6) requires written notice of the exact termination date and the exact date benefits are cancelled, delivered no more than five working days after the termination.
- How long must a US employee be given to sign a severance release?
- Where the release covers age discrimination claims, 29 U.S.C. § 626(f)(1)(F) requires at least 21 days to consider it, or at least 45 days if the waiver is requested in connection with an exit incentive or termination programme offered to a group or class of employees. Section 626(f)(1)(G) requires a revocation period of at least 7 days after signature, during which the agreement is not enforceable. California Government Code § 12964.5(b)(4) separately requires at least five business days to consult an attorney.
- When must final wages be paid in the United States?
- This is state law. In California, Labor Code § 201(a) makes wages earned and unpaid at the time of discharge due and payable immediately, and § 202(a) gives 72 hours where the employee quits without notice. Labor Code § 203(a) penalises wilful late payment by continuing the employee's wages at the same rate for up to 30 days. Other states set different deadlines.
Sources
Every statement on this page is drawn from one of these. All were fetched on .
- Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2102
- 29 U.S.C. § 2102(a)
- 29 U.S.C. § 2101(a)(1) to (3)
- 29 U.S.C. § 626(f)(1)(E) to (G)
- New York Labor Law § 195(6)
- Cal. Labor Code §§ 201(a) and 202(a)
- Cal. Gov. Code § 12964.5(b)(4)
- Cal. Labor Code § 203(a)
- Cal. Gov. Code § 12964.5(b)(1) and (b)(2)
The same document elsewhere
Other US documents
Termination Letter: the jurisdiction-neutral guideBack to Document Library