Got Laid Off Today, What Should I Do?

[libertarian4321]

I normally work from home (as an engineering consultant).  I got called into the office for an "important" meeting yesterday.  Usually, they just leave me the Hell alone and let me do my work unless it's something extremely important.  So I kinda knew a "MANDATORY important double secret" meeting wasn't a good thing, lol.

Of course, the meeting was to lay off about 80% of the staff (actually, they used the term "furlough"- whats the difference?)  I was kinda expecting it.  Might only be for a couple of weeks or months, but I don't know.

Many of my co-workers, of course, were in full panic mode.  It was kind of amusing, sad, and pathetic at the same time watching their reactions.  Well paid professionals seeing the lives turned upside down just because of a (presumably short term) job loss.  Don't these folks have the sense to put some money aside for emergencies (of course, we all know many of them don't).

Looks like a lot of checks to private/parochial schools are going to get canceled in a hurry, with school just about to start.

On the other hand, I'm having a hard time giving a damn.  I guess it's one of the downsides of being financially independent.  Unemployment becomes Funemployment.  I've got a stack of books a mile high I've been waiting to get to.

I'm not even sure I want to jump through the hoops of filing for unemployment.

I guess I should file for unemployment, but then donate the money (I think it's just over $400/week in Texas) to charity?  $400 bucks will buy a fair amount of kibble/mac and cheese for the local animal shelter/food bank.

Anyway, I guess the bottom line is, having your financial sh*t together sure takes the sting out of life's little emergencies.  Even if you aren't yet FI, merely having a cushion sure softens the blow.

BTW, my first day of unemployment, I did absolutely nothing of note.  Spent most of the day on the deck with my dogs, reading a book and drinking iced tea.  This could be a trend :).

[Rezdent]

I'm not sure whether to commiserate or congratulate.
I'm glad to hear that you have enough cushion to weather the downturn.
Furloughs can be really rough if you're in the private sector - there's this vague idea that the job might come back which leaves folks uncertain on what to do.  And I'm sure that many of your coworkers won't have the luxury of waiting.

It's been years since I got laid off but I still remember it. For some odd reason I was very resentful of being dumped even though logically I understood it wasn't a personal issue. I spent the first few days doing nothing. That was probably a good thing because it took some time to digest the rejection, pull it together and hustle.

Is there a time limit on how long you can wait before deciding to file UE?

[This_Is_My_Username]

unemployment payments are a legal entitlement for people in your position, you should definitely apply for it.

[surfhb]

I'm not even sure I want to jump through the hoops of filing for unemployment.

I guess I should file for unemployment, but then donate the money (I think it's just over $400/week in Texas) to charity?  $400 bucks will buy a fair amount of kibble/mac and cheese for the local animal shelter/food bank.

Pretty poor decision for someone who has their shit together ;)    At the very least get back the money you paid into it

[G-dog]

I'm sorry - if for no other reason than it wasn't your decision.
And, congratulations for being in a position that this is only inconvenient (if even that) instead of debilitating.
Sounds like you have a plan.  And I think collecting unemployment, however you opt to use the money is a good idea.

It is sad that many people have no buffer to be able to better survive life's bumpy ride.

[LibrarIan]

Since it sounds like you have your stuff together, I'll say cheers! Get your read on and take your dogs on some adventures. Anything good in your to-read stack?

[matchewed]

I wouldn't take the unemployment even for giving to charity. The efficiency of the original money is further hampered by you acting as a middleman and going through all that paperwork and bureaucracy.

Bravo on being prepared for life. :)

[naloj]

Aren't you getting a 1099 as a consultant?  If so, you don't qualify for unemployment.

[shotgunwilly]

I'm not even sure I want to jump through the hoops of filing for unemployment.

I guess I should file for unemployment, but then donate the money (I think it's just over $400/week in Texas) to charity?  $400 bucks will buy a fair amount of kibble/mac and cheese for the local animal shelter/food bank.

Pretty poor decision for someone who has their shit together ;)    At the very least get back the money you paid into it

Unemployment insurance is paid for by the employer, not the employee.

But yes OP, I would definitely get the unemployment benefits.  As far as donating them to charity, that is really commendable.

[BlueMR2]

When I got laid off way back in the day, I checked into unemployment benefits and they were so ridiculously low that it wasn't even worth filing for.  Yours are high enough that it's probably worth it.  :-)

[Middlesbrough]

Is this your official retirement? If so, congrats!

[libertarian4321]

I'm not sure whether to commiserate or congratulate.
I'm glad to hear that you have enough cushion to weather the downturn.
Furloughs can be really rough if you're in the private sector - there's this vague idea that the job might come back which leaves folks uncertain on what to do.  And I'm sure that many of your coworkers won't have the luxury of waiting.

It's been years since I got laid off but I still remember it. For some odd reason I was very resentful of being dumped even though logically I understood it wasn't a personal issue. I spent the first few days doing nothing. That was probably a good thing because it took some time to digest the rejection, pull it together and hustle.

Is there a time limit on how long you can wait before deciding to file UE?

You make a good point about the tough decisions others face.  Even though some of my co-workers are not all that financially competent, they are good people and I hope this situation doesn't leave them too badly off.  I should have made flippant comments about their private school payments.  And not all of those furloughed were well paid professionals.  Along with them, support staff were furloughed (or soon will be) as well.  For them, it may not be about private school payments, it might be about mortgage and car payments.

This furlough could last for days, or it could drag on for months, depending on circumstances largely outside the company's control.  While people can take unemployment, that will be far less than they earned working.  So they will have to seriously consider whether to make a career move.

[libertarian4321]

Another dilemma regarding unemployment benefits.

Aside from the degrading and annoying experience of going to the wretched unemployment office and applying for benefits, there is the dreaded "you must be looking for work" requirement which means you must take a job if offered (within certain pay and locale parameters).

I want to keep working, but ONLY for the company that currently employs me.  I do NOT want to work for one of the big, inflexible firms.  Been there, done that, hated every minute of it.

So if I make my "5 job contacts per week" (or whatever it is these days), and someone calls me, interviews me, and hires me, I'm kinda screwed?

I guess I could go into the interview being honest and say "I'll only work for you until the end of the furlough, then I'm going back to my original company."  That would scare off most potential employers, right?

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

[Numbers Man]

Another dilemma regarding unemployment benefits.

Aside from the degrading and annoying experience of going to the wretched unemployment office and applying for benefits, there is the dreaded "you must be looking for work" requirement which means you must take a job if offered (within certain pay and locale parameters).

I want to keep working, but ONLY for the company that currently employs me.  I do NOT want to work for one of the big, inflexible firms.  Been there, done that, hated every minute of it.

So if I make my "5 job contacts per week" (or whatever it is these days), and someone calls me, interviews me, and hires me, I'm kinda screwed?

I guess I could go into the interview being honest and say "I'll only work for you until the end of the furlough, then I'm going back to my original company."  That would scare off most potential employers, right?

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

Just apply for unemployment online, instead of in line. Proof of looking for work is just saying you applied to jobs x, y, and z, etc.

[Eric]

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

Just show up drunk.  It'll be fun and at the same time, you'll have no chance of getting the job.  [insert obligatory don't drink and drive comment here]

[matchewed]

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

Just show up drunk.  It'll be fun and at the same time, you'll have no chance of getting the job.  [insert obligatory don't drink and drive comment here]

That's what public transportation is for... getting everywhere drunk.

[strider3700]

demand an insane wage and usually they will not hire you.  Having said that I do know someone that demanded $180k/year to move to a new city and do their current position that paid $75k and the company agreed.

[davef]

If I were you I would file for unemployment and hike the Pacific coast trail. Its not too late if you start at the Canadain boarder and head south for christmas in Mexico. (Or San Diego)
Its something I've been wanting to do all my live but never expect to get the 3 months straigh off to do it. Leave your former boss a letter telling him if he wants your services when you get back have a letter in your mailbox when you return.

Depending on your living situation and investment, you may actually be able to increase your worth because you will be living so cheaply.

[shotgunwilly]

I've been through the unemployment benefits process and collected.  It's all a flippin joke.

[solon]

This thread is much more amusing if you replace "laid off" with "laid"...

Got Laid Today, What Should I Do?

It's been years since I got laid but I still remember it.

When I got laid way back in the day,

ETA:spelling

[rugorak]

I want to keep working, but ONLY for the company that currently employs me.  I do NOT want to work for one of the big, inflexible firms.  Been there, done that, hated every minute of it.

So if I make my "5 job contacts per week" (or whatever it is these days), and someone calls me, interviews me, and hires me, I'm kinda screwed?

I guess I could go into the interview being honest and say "I'll only work for you until the end of the furlough, then I'm going back to my original company."  That would scare off most potential employers, right?

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

So from what I am reading you are FI and have no need to work at all. I am correct with that?

If you are truly FI then you may just want to sit back, do the ER thing and wait and see. If it permanent then so be it.

And if you are truly FI I would skip the unemployment for charity idea. It is really a lot of busy work for not much money. It would probably be a much better end result to volunteer your new found free time. Even if it was just the amount of time you would have been spending job hunting. 10 hours a week is worth more than $400 to most places.

[odput]

demand an insane wage and usually they will not hire you.  Having said that I do know someone that demanded $180k/year to move to a new city and do their current position that paid $75k and the company agreed.

That's amazing!  I wonder if I would have the brass to ask for that kind of salary once I'm FI...sadly, I doubt it

[RootofGood]

From my experience after being shit-canned 1 year ago:

1. Apply for unemployment ASAP. It's free money.
2. If you have dividends reinvested automatically, consider switching those to pay out in cash.  For me it was nice knowing I'd have roughly 1/3 of my annual expenses paid automatically from dividends in my taxable accounts.  Having cash in the bank and a steady cash flow is psychologically comforting.
3. Figure out if you're ER or still looking for work.  It took me a day to figure it out (=ER).
4. Check out your tax situation.  Can your newly lowered 2014 income lead to new tax savings opportunities (trad IRA contribution instead of Roth for example)?
5. Healthcare?  Obamacare application time (healthcare.gov).  You might be able to get a fat subsidy if your income going forward is low.  Not sure how they measure AGI if you quit work and are looking for work.

In regards to the "diligent search for work" requirement, I always looked for dream jobs that I wasn't necessarily the most qualified for (Director of Research, CEO of the Port System, etc) but still highly qualified in terms of experience, education and credentials.  I'd name a big ass salary at the middle to upper end of the potential range.  I got a few interviews, but no one felt I was the right candidate.  I would have actually taken any of those jobs if offered them, it just didn't work out (un)fortunately.  Being some corporate bigwig making a fat six figure salary just for kicks would have been the most awesome way to cap off my career, but it wasn't in the cards.

[brewer12345]

Another dilemma regarding unemployment benefits.

Aside from the degrading and annoying experience of going to the wretched unemployment office and applying for benefits, there is the dreaded "you must be looking for work" requirement which means you must take a job if offered (within certain pay and locale parameters).

I want to keep working, but ONLY for the company that currently employs me.  I do NOT want to work for one of the big, inflexible firms.  Been there, done that, hated every minute of it.

So if I make my "5 job contacts per week" (or whatever it is these days), and someone calls me, interviews me, and hires me, I'm kinda screwed?

I guess I could go into the interview being honest and say "I'll only work for you until the end of the furlough, then I'm going back to my original company."  That would scare off most potential employers, right?

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

I keep applying for those strip club jobs, not my fault they don't hire me.

[libertarian4321]

Or I guess I could just "tank" the interview, like a bad NBA team late in the season. :)

Just show up drunk.  It'll be fun and at the same time, you'll have no chance of getting the job.  [insert obligatory don't drink and drive comment here]

This is a plan I can work with.  Just need to make sure I take a cab there...

[libertarian4321]

It's been a looong time since I've applied for unemployment.

I thought it involved some PITA process where you had to show up and waste a day listening to government drones who explained how to write a resume.

If it's a simple online process, I may actually do it.

Then spend the money on charity or liquor- as suggested by another poster, so I can be ready for any job interviews. :)

[MoneyCat]

Donating the unemployment is a very nice thing to do.  If you don't live in one of those states that like to torment the unemployed by forcing them to jump through hoops and scream "Thank you, sir, may I please have another" while they get paddled (aka Southern states), then it's probably worthwhile to apply for it just for the good you can do with it.

I'm also at the point where it doesn't affect me very much if I get laid off and it's a nice place to be.  I also like the fact that I could just say "Eff this" and walk away whenever I feel like it.

[Wildflame]

Most important thing to do is to give Past Self a high five for putting you in such a good position now!

[rugorak]

It's been a looong time since I've applied for unemployment.

I thought it involved some PITA process where you had to show up and waste a day listening to government drones who explained how to write a resume.

If it's a simple online process, I may actually do it.

Then spend the money on charity or liquor- as suggested by another poster, so I can be ready for any job interviews. :)

When I was on unemployment 9 years ago it was all online except for they did make you attend a 1 day class of nonsense. I lucked out though, I was only unemployed for 2 weeks and the class wasn't until the third week. I called up and asked if it was still required in order to keep my 1 check and they said nope, if you got a job then I didn't need it anyway. But as people said it can vary state to state.

[Dicey]

Congratulations!
Is there anyone in your furlough group who may be in a financial bind through no fault of their own? Someone with a disabled or sick child, perhaps? If so, you might consider filing for unemployment and passing the money on to them. You can give anyone you chose a "gift" of 14k per year per the current tax code. It wouldn't be a write-off for you but it could be a life-saver for someone. If you don't know of anyone personally, HR might be able to help or even serve as an anonymous conduit.

[Threshkin]

If I were you I would file for unemployment and hike the Pacific coast trail. Its not too late if you start at the Canadain boarder and head south for christmas in Mexico. (Or San Diego)
Its something I've been wanting to do all my live but never expect to get the 3 months straigh off to do it. Leave your former boss a letter telling him if he wants your services when you get back have a letter in your mailbox when you return.

Depending on your living situation and investment, you may actually be able to increase your worth because you will be living so cheaply.

And if you hike it north to south it's all downhill....Right?

[Dicey]

If I were you I would file for unemployment and hike the Pacific coast trail. Its not too late if you start at the Canadain boarder and head south for christmas in Mexico. (Or San Diego)...

And if you hike it north to south it's all downhill....Right?

LOL Threshkin. I rode my bike from SF to LA and heard that one all the time. There is a kernel of truth to it, as the winds tend to favor the north to south traveler. In the case of cycling, you're also on the ocean side of the road, so the scenery is better.

[libertarian4321]

I put it off for a couple of weeks, hoping this furlough would be temporary, but I'm going to file tomorrow.