Losing a job, whether it is voluntary or involuntary, is often jarring. Maybe you saw it coming. Maybe it hit you out of the blue. Either way, once the dust settles, most people find themselves asking the same question:

What now?

Specifically: What are my rights? What should I expect to receive, when? Do I still have access to health insurance? Am I owed unused vacation time? These questions matter. Knowing the answers can protect your financial stability, your health, and your peace of mind during an already stressful transition.

This post walks through the most important legal rights you have after employment separation in Massachusetts. We will cover timely payment of final wages, vacation payouts, severance, COBRA health insurance, and more.

1. Final Wages: When Do You Get Paid?

Let us start with the basics: your last paycheck. Massachusetts law is very clear on this, and employers must follow strict timelines.

If You Were Terminated
If you were fired, laid off, or otherwise involuntarily let go, your employer must pay you all wages owed on your last day of work. That includes:

  • Unpaid regular wages
  • Accrued unused vacation time
  • Any earned commissions, if due and calculable at the time
  • Bonuses, if they are already earned and not discretionary

This rule applies even if your termination was sudden or without warning. No “we will mail it later” or “it will be included in your next pay cycle.” You should walk out with a check or direct deposit already arranged.

If You Resigned
If you chose to leave on your own, your employer has until the next regularly scheduled payday to give you your final wages. That said, if your employer wants to pay you earlier, they are allowed to.

Vacation Pay
In Massachusetts, unused, accrued vacation time is considered wages. That means it has to be paid out in full when your employment ends. If you have earned it, you are entitled to it, plain and simple.

However, be aware of your company’s vacation policy. If the policy says that vacation must be “used or lost” by a certain time, and you have not used it, you may not be entitled to a payout. Likewise, if vacation is accrued on a prorated basis and you do not have any already accrued time, you may not be owed anything.

2. Severance Pay: Am I Entitled to It?

Here is the honest answer: most employees are not automatically entitled to severance pay. There is no law in Massachusetts, or at the federal level, that requires employers to offer severance. However, there are three situations where severance might still come into play:

1. It is in Your Contract
If you have an employment agreement that spells out severance terms, your employer must follow those terms.

2. It is Offered in Exchange for a Release
Often, employers offer severance pay in exchange for a separation agreement. This is a legal document where you agree not to sue the company, not to disclose confidential information, or not to compete in a certain area for a certain time.

You are giving something up in exchange for receiving the severance, so read carefully. Better yet, have a lawyer review the document before you sign. Once you sign, your rights are limited.

3. Health Insurance: Understanding COBRA

If you were on your employer’s health insurance plan, losing your job means you will lose that coverage, but not immediately.

Thanks to COBRA, the Consolidated Omnibus Budget Reconciliation Act, you can keep your existing coverage for up to 18 months, or sometimes longer in special cases.

Here is how it works:

  • Your employer has 14 days after your separation to notify the plan administrator.
  • The plan administrator then has another 14 days to send you a COBRA election notice.
  • You will have 60 days to decide whether to continue your coverage.

If you choose to continue, coverage is retroactive to the date your employment ended, so there is no lapse, as long as you pay the premiums.

But Here is the Catch:
COBRA is not free. In fact, it can be expensive. You will be responsible for the full cost of the premium, plus a 2 percent administrative fee. This often means hundreds, or even over a thousand, dollars per month, depending on your plan.

Still, it may be worth it to avoid a gap in coverage, especially if you are managing ongoing health needs or are in between plans.

4. Unemployment Insurance: What You May Be Eligible For

If you lost your job through no fault of your own, you may qualify for unemployment benefits through the Massachusetts Department of Unemployment Assistance, DUA.

To qualify:

  • You must be able, available, and actively looking for work.
  • Your separation must not have been due to misconduct.
  • You must have earned enough wages in your base period, usually the last 4 to 5 quarters.

Severance and Unemployment
Severance pay can impact your ability to receive unemployment, but not always. When in doubt, file your unemployment claim right away. The DUA will make a determination based on your specific case.

5. 401(k), Pensions, and Other Benefits

Your employment may be over, but your money is not gone.

401(k) Plans
If you contributed to a 401(k), you have a few options:

  • Leave the funds in your former employer’s plan, if allowed.
  • Roll over the funds into an IRA or another 401(k).
  • Cash out, but this usually comes with taxes and penalties if you are under 59 1/2.

You do not lose the money, but you do need to decide how to handle it.

Stock Options or Equity
If you had stock options or other equity grants, check the terms. Many plans require you to exercise your options within a certain number of days after termination, or you will lose them.

6. Non-Competes, NDAs, and Post-Employment Obligations

Just because your job ends does not mean your obligations disappear.

  • If you signed a non-compete agreement, it may still apply, even after you leave.
  • If you had a non-disclosure agreement, NDA, you are still bound by it, possibly indefinitely.
  • If you agreed to return company property or delete sensitive data, you need to do it, or you could face legal consequences.

Massachusetts law does permit non-competes to restrict post employment activity, but the terms must comply with the law which, among other things, limits how long non-competes can last and under what conditions they can be enforced, so if you are unsure, get advice before taking your next step.

7. Wrongful Termination and Discrimination Claims

If you suspect your termination was unlawful, you may have a legal claim against your employer.

Grounds for a Potential Claim:

  • You were fired because of your race, gender, age, disability, religion, or another protected class.
  • You were retaliated against for reporting discrimination, harassment, or wage violations.
  • You were let go for taking protected leave, such as under the Family and Medical Leave Act, FMLA.
  • You were terminated for specific kinds of whistleblowing or reporting unsafe conditions.

You may have claims under Massachusetts law, federal law, or both. These claims come with strict deadlines, so do not wait too long to speak with an attorney if you believe your rights were violated.

8. Practical Steps to Take Immediately

Here is a quick post separation checklist:

  • Collect all your documents: offer letters, contracts, benefits information, and especially any separation agreement.
  • Request a copy of your personnel file, Massachusetts law gives you that right if you request it in writing.
  • Apply for unemployment as soon as possible, even if you are not sure if you will qualify.
  • Review your COBRA options, or explore alternatives on the Massachusetts Health Connector.
  • Talk to a lawyer before signing any agreements, especially if there are waivers or non-compete clauses.

Final Thoughts

Employment separation is stressful, but it does not have to be disempowering. Massachusetts gives employees strong protections, particularly around final wages, vacation pay, and access to health insurance.

Knowing your rights, and acting quickly, can help you avoid costly mistakes, preserve your income, and start the next chapter on the right foot.

And if you are unsure whether your employer has followed the law or offered you a fair deal, talk to someone who knows the terrain. At Greene & Hafer, we help employees make sense of their options, assert their rights, and move forward with confidence.

If your rights are being violated, Greene & Hafer can help. Our Boston based attorneys have extensive experience in employment and privacy law. Contact us to schedule a confidential consultation.