Layoffs happen for all sorts of reasons, and many of those reasons have nothing to do with job performance. In some cases, companies try to remain competitive in their industry by outsourcing jobs to a cheaper location. Other times, new technology allows companies to automate tasks that were once performed by humans.
The closing of a part of a business like a plant or factory—whether due to outsourcing, automation, or another factor—can cause hundreds or even thousands of job losses. And when mass layoffs occur, it can be a real struggle for fired workers to find new jobs, particularly when they're competing against many of their former colleagues for the same few positions.
The federal government and many states have programs in place to help so-called "dislocated workers," which includes many people who are either unemployed or underemployed through no fault of their own.
According to the U.S. Department of Labor, the term "dislocated worker" can describe the following types of unemployed and underemployed workers. (Note that your state's definition might be a little different, so check with your state's labor department to determine your eligibility.) (20 CFR § 680.130(a) (2018).)
This category includes those who have been laid off or notified of a layoff and who aren't likely to be able to return to a previous occupation. For example, if an assembly plant reduces its workforce by 90% due to automation, those who are fired and unable to find work would be considered dislocated workers.
This class covers people who were self-employed but have stopped working due to economic conditions or a natural disaster. A small-town hairstylist whose salon was destroyed in a tornado would fall under this category.
Dislocated workers also include spouses of active duty members of the Armed Forces who lose employment because of their partners' permanent duty station changes. For instance, a man who quits his job as a hotel assistant manager to move with his spouse, who has been transferred to a military base in Germany, would qualify as a dislocated worker.
Military spouses who are unemployed or underemployed and struggling to obtain or employment can be considered dislocated workers. While similar to the spouses in the category above, these former workers haven't necessarily experienced a recent job loss. They simply are not working or are considered underemployed because their total wages fall well below what’s expected of someone with their skills and experience. This category would include, for example, a trained marine biologist who is living with her spouse on a military base in the Midwest and performing part-time unskilled work at a shipping warehouse.
This category describes people who:
This category would include a divorced former stay-at-home mom who hasn't been able to find work and isn't receiving alimony.
The federal Workforce Innovation and Opportunity Act was signed into law by President Obama in 2014. Under this law, the U.S. Department of Labor provides funding to states for readjustment programs designed to put people back to work. Dislocated workers can receive services such as skills assessments, additional training or education, career planning, and help finding a job.
If you're out of work due to a large-scale layoff or natural disaster, you might be eligible for job services through a federally funded National Dislocated Worker Grant. Contact your state's dislocated worker unit or rapid response coordinator for more information.
Under the federal Worker Adjustment & Retraining Notification (WARN) Act, which applies to employers with at least 100 full-time employees, companies who wish to close a plant or make a mass layoff must give 60-days' advance notice in writing to their workers. Workers who haven’t received a legally required WARN Act notice might be entitled to compensation.
The employer must also notify the local government and the state's dislocated worker unit, which provides job placement, retraining, and other services to those who have been laid off. Many states have their own "mini-WARN" laws that provide additional protections, such as a longer notice period before layoffs and stiffer penalties for employers.
Many workers who have been laid off will be eligible to receive unemployment compensation from their state unemployment agency. Each state has its own application process and eligibility criteria, as well as requirements to continue receiving benefits. In addition to cash assistance, benefits can include training programs, access to job postings, and other help finding a job.
If you've been denied unemployment benefits, if you didn't receive advance notice of a mass layoff, if you think you’ve been wrongfully terminated, or if you could otherwise use legal guidance, consider talking to an employment lawyer. An experienced employment attorney should be able to explain the benefits and protections that apply to your situation, including any not covered in this article.
