Dallas Employment Trial Lawyer Ellie Johnston
As Thanksgiving approaches, most people are thinking about carving turkeys, not careers. But for many workers in Texas, the end of the year brings a less welcome tradition: company “restructuring.” Each November, employers roll out layoffs, citing budget cuts, reorganizations, or “changing business needs.”
If you’ve been told your position is being eliminated, you may feel blindsided, confused, and unsure what happens next. The good news? Even in Texas—a state known for at-will employment—you still have important rights when it comes to layoffs, severance, and unemployment. Understanding them can help you protect yourself, your finances, and your future.
At-Will Employment Doesn’t Mean “No Rights”
Texas is an at-will employment state, which means employers can terminate employees at any time, for almost any reason—or for no reason at all—unless that reason violates the law. But “at-will” doesn’t give companies a blank check. Employers still cannot fire or lay off employees for illegal reasons, such as discrimination (based on race, age, gender, disability, or other protected traits) or retaliation (for reporting misconduct, requesting leave, or asserting legal rights).
If you were included in a layoff shortly after filing a complaint, requesting medical leave, or standing up for yourself or a coworker, that timing matters. Even a so-called “reduction in force” can be pretext for retaliation.
Before signing any documents, it’s worth consulting an employment attorney to determine whether the layoff was lawful—or whether it was just dressed up to look that way.
The WARN Act: When Employers Must Give Advance Notice
Federal law recognizes that losing a job without warning can devastate a family, especially around the holidays. That’s why the Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to give at least 60 days’ notice before conducting large-scale layoffs or plant closures.
In general, the WARN Act applies to companies with 100 or more full-time employees, and it kicks in when:
- 50 or more employees are laid off at a single site, and
- those employees make up at least 33% of the workforce at that location.
If an employer fails to give proper notice, affected workers may be entitled to back pay and benefits for up to 60 days.
While Texas doesn’t have its own state WARN law (some states do), federal WARN still applies to qualifying layoffs here. So if your company suddenly announced a “mass layoff” or “facility closure” without warning, don’t assume you’re out of luck—federal law may say otherwise.
Severance Pay: Know What You’re Signing
Many employees learn about their termination and receive a severance agreement on the same day—often with pressure to sign immediately. Severance pay isn’t legally required in Texas, but when it’s offered, it usually comes with strings attached.
By signing, you may be waiving your right to sue for discrimination, retaliation, unpaid wages, or other claims. The company’s goal is to buy peace; your goal should be to make sure you’re not selling your rights too cheaply.
You have the right to review and negotiate a severance agreement before signing. For workers over 40, the federal Age Discrimination in Employment Act (ADEA) even guarantees a 21-day review period and a 7-day revocation period after signing. Employers sometimes omit or ignore those protections—especially in “mass layoff” situations—so it’s important to verify that your agreement meets legal standards.
A quick legal review can often identify missing pay, unpaid PTO, or illegal terms that could cost you thousands if you sign blindly.
Unemployment Benefits: Don’t Leave Money on the Table
If you were laid off through no fault of your own, you’re likely eligible for unemployment benefits through the Texas Workforce Commission (TWC). These weekly payments can help cover basic expenses while you look for new work.
A few key points:
- You generally qualify if you were laid off, not fired for misconduct.
- You can apply online at twc.texas.gov.
- You don’t need your employer’s approval—the TWC decides eligibility.
Even if your employer says you’re “not eligible,” it’s worth applying anyway. Many employers contest claims automatically, and the TWC often sides with workers who can show they were let go for economic—not disciplinary—reasons.
When “Business Decisions” Aren’t So Innocent
It’s easy for companies to hide behind corporate buzzwords—“realignment,” “streamlining,” or “strategic refocus.” But if only certain employees were selected for termination, or if the layoffs disproportionately affected older workers, women, or employees of color, that’s not strategy—it’s discrimination.
The law doesn’t allow employers to use layoffs as camouflage for bias. Patterns matter. So do timing and documentation. If you suspect your employer’s “business decision” was really about your age, health, or complaints, you may have a legal claim.
This Thanksgiving, Protect What You’ve Earned
The holiday season should be a time for gratitude, not grief. But if your employer hands you a pink slip instead of a paycheck, remember: you still have rights, and you still have options.
Before you sign a severance agreement, walk away from your benefits, or assume you can’t fight back, get informed. Speaking with an experienced employment attorney can help you understand what you’re owed, identify potential claims, and make sure your employer is playing by the rules.
If you’ve recently been laid off or suspect your termination was unfair, don’t wait to get help. Deadlines for asserting your rights can be short—sometimes just 180 days from the date of termination.
This Thanksgiving, protect what you’ve worked hard for. Gratitude is important, but so is justice.
Contact the experienced employment law attorneys employment law attorneys at Rob Wiley, P.C. to schedule a consultation and learn how we can help you protect your rights and your future.