Research Summary: Whether you’re about to retire or bracing for mass layoffs, many states require a formal separation notice before you officially split from your company. Generally speaking, this separation notice is a written communication sent from your employer to you that confirms the end of the employment relationship.
Often, this communication must be sent within a window of time that varies from state to state.
Overall, 19 US states have opted to enact laws that require employees to provide formal separation notices.
With that in mind, we’ve investigated all of the essential facts about separation notice laws in the US, and according to our extensive research, these are all of the states with related policies:
| State | Separation Notice Template Form | Qualified Employees | Employer Requirements |
|---|---|---|---|
| Arizona | Form UIB-1241A — Take Care of Unemployment Business by Telephone or Internet | All employees who become unemployed | Must print and distribute the form (form must include information on how to file for unemployment benefits). |
| California |
Form DE 2320 — For Your Benefit, California’s Program for the Unemployed Form DHCS 9061 — Notice to Terminating Employees, HIPP Program |
All employees who are discharged, laid off, or take a leave of absence | Must provide immediate written notice and the DE 2320 form (This is not required if the termination was voluntary or if work stopped due to a labor dispute). |
| Connecticut | Form UC-61 — Unemployment Separation Packet/Notice | All employees who become unemployed |
Must provide UC-61 (packet), a copy of the termination notice, and inform employees that they can submit a written statement disagreeing with the notice (this documentation must be kept on file). Must be distributed in person or mailed to the last known address. |
| Georgia | Form DOL-800 — Separation Notice | All employees who become unemployed | Form must be delivered to the employee so it can be signed and dated on their last day of work or mailed to their last known address within three days. |
| Illinois | Form CLI111L — What Every Worker Should Know About Unemployment Insurance | Employees separated from employment for seven or more days. | Form must be delivered on the employee’s last day or sent to their last known address within five days. |
| Iowa | Form 60-0154 — Notice of Separation or Refusal of Work Under Conditions That May Disqualify | Employees who leave or refuse employment (if the employer believes they are not qualified for unemployment benefits) | Notice of separation must be filed online or in person if an employee leaves or refuses employment and the employer believes they are not qualified for unemployment benefits. |
| Louisiana | Form LWC-77 — Separation Notice | All employees who become unemployed | Must file an online separation notice within three days of separation (the document must include an explanation of the cause of separation and payment details). |
| Maryland | Employer letter to employee — Availability of Unemployment Compensation | All employees who become unemployed | Must provide separated employees with a notice of unemployment availability. |
| Massachusetts | Form 0590-A — How to File a Claim for Unemployment Insurance Benefits | All employees who become temporarily or permanently separated from work | Form must be delivered in person or sent to the employee’s last known address within 30 days of separation. |
| Michigan | Form UIA 1711 — Unemployment Compensation Notice to Employee | All employees whose employers are not filing claims on their behalf | Must provide form UIA 1711 unless employers are filing claims on behalf of the employee (this is not necessary if a copy of the form was provided at an earlier date). |
| Mississippi | MDES Communication 033120 | All employees who become unemployed | Must have an unemployment law poster clear and visible for all employees. |
| Missouri | Form M-INF-288-5 | All employees who become unemployed | Must provide departing employees with an M-INF-288-5 form. |
| Nevada | Notice DETR-ESD — Employer Notification to Employees of the Availability of Unemployment Compensation | All employees who become unemployed | Must provide departing employees with a DETR-ESD notice. |
| New Jersey | Form BC-10 — Instructions for Claiming Unemployment Benefits | Employees separated from employment for seven or more days | Must provide the BC-10 form at the time of separation. |
| New York | Form IA 12.3 — Record of Employment | All employees who become unemployed | Form IA 12.3 must be completed for all employees who’ve been separated for more than three days, and employees must be informed of their right to apply for unemployment benefits. |
| Pennsylvania | Form UC-1609 | All employees who become unemployed | Must inform separating employees of unemployment compensation availability. |
| Rhode Island | Employer notice to employee — Availability of Unemployment Insurance Benefits | All employees who become unemployed | Must inform employees of unemployment compensation availability at the time of separation. |
| South Carolina | Employer notice to employee — Availability of Unemployment Insurance Benefits | All employees who become unemployed | Must inform employees of unemployment compensation availability at the time of separation. |
| Tennessee | Form LB-0489 — Separation Notice | All unemployed employees who’ve been employed for over a week | Must provide departing employees with LB-0489 within 1 day of separation (unless the form has been arranged to be submitted electronically or through the mail). |
Federal Separation Notice Requirements
For the 31 states who haven’t implemented their own separation notice requirements, employers can defer to the federal regulations. For terminating employees, these include:
-
Employers with 20+ employees must provide a Consolidated Omnibus Budget Reconciliation Act (COBRA) notice and election form to employees who are participating in a group health plan provided by their employer.
These forms must be delivered the day before the termination, as well as to any of the terminated employee’s dependents that use the plan.
-
Employers must provide notice 60 days prior to termination if the layoff or position elimination is covered under the WARN Act.
-
Employers must act in accordance with IRS requirements by providing notices about an employee’s right to retirement benefits within a certain time frame.
Separation Notice Requirements FAQ
-
What should be the reason for separation?
Employees can experience separation for a variety of reasons, but the most common is poor employee performance. While employers choose to let go of employees for a variety of reasons, it is worth noting that a separation can come from the employee’s side as well.
-
Common employer reasons for separation: resignation, relocation, death, permanent incapacity, parental duties, familial care, discharge, or retirement
-
Common employee reasons for separation: employee incompetence, insubordination, poor employee attendance, theft, expiration of an employment contract, downsizing of the workforce, or bankruptcy
-
-
What is a separation checklist?
A separation checklist is a complete outline of all the steps an employer needs to take when an employee departs. While what’s included on the checklist can vary based on the laws of the state, here are some general things the list should include:
-
Employee separation notice or letter
-
State-required notices that must be provided to the employee
-
Severance agreement details must be provided to the employee (if applicable)
-
Written notices and releases accociated with WARN and OWBPA
-
Notification to the employee about the status of their benefits
-
Statement about accrued PTO and how it will be converted to compensation
-
Retirement plan information and options
-
Review of the employee’s final paycheck and any other compensation owed
-
Permission from the employee to respond to future employment verification requests
-
Review of noncompete or confidentiality agreements between employer and employee
-
Return of company property (e.g. computer, phone, uniform, vehicle, keys, ID, etc.)
-
Removal of employee belongings from the workplace
-
Completion of the exit interview
-
Notification to your legal department (if the employee has a work visa)
-
Disablement of the employee’s company access (e.g. passcodes, log-ins, telephone voicemail, etc.)
-
Employment file updates
Additionally, when creating a separation checklist, it’s important to work with an attorney or legal professional to ensure everything is done correctly.
-
-
What is the process of employee separation?
The process of employee separation typically involves a two-week notice, followed by the tasks listed on the separation checklist. First, an employee or employer might provide a written notice about their desire to separate, which will then be followed by a period of fulfilling state and federal requirements.
Employers must provide the proper forms and notices, while employees must fill out paperwork acknowledging the separation and relinquish company property like over keys, IDs, and other equipment.
Conclusion
To encourage ethical and responsible separation, many states have chosen to implement their own separation notice requirements that go further than those at the federal level. In total, 18 states require employers to distribute forms when an employee departs, while two states require clearly displayed posters about unemployment rights in a common area.
As an employer, it’s vital to fulfill separation requirements in accordance with federal and state laws to ensure a legal process. To do so, it can be highly beneficial to create a separation checklist or to go over the relevant forms before you need to go through the process.
Overall, separation notice requirements benefit both employers and employees by keeping everything documented. This ensures that both parties are always protected.
Author
Jack Flynn
Jack Flynn is a writer for Zippia. In his professional career he’s written over 100 research papers, articles and blog posts. Some of his most popular published works include his writing about economic terms and research into job classifications. Jack received his BS from Hampshire College.
