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Texas Mass Layoffs: What Employees Need to Know in 2025

Mass layoffs are never easy—especially when they come without warning. If you’re in Texas and your employer just announced a large-scale termination, you might be asking: What are my rights? Am I owed notice? Severance? Can I fight back?

This guide breaks down everything Texas employees need to know about mass layoffs in 2025, including legal protections, severance pay, notice requirements, and what to do next.

What Is a Mass Layoff?

A mass layoff refers to a large number of employees being terminated at once, often due to:

• Business closure

• Company restructuring

• Mergers or acquisitions

• Relocation

• Economic downturns

In many cases, these layoffs are sudden—but depending on the size and circumstances, there may be federal notice laws involved.

The WARN Act: Your Right to Advance Notice

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires certain employers to give 60 days’ notice before a mass layoff or plant closing.

WARN applies if:

• The employer has 100+ full-time employees, and

• There’s a layoff of 50+ workers at a single site within a 30-day period

If WARN applies, employers must:

• Notify affected employees in writing

• Notify the state and local government

If they don’t, they may owe:

• Back pay for each day of notice not given

• Benefits compensation for that period

⚠️ Texas doesn’t have its own WARN law—only the federal version applies.

Are Texas Employers Required to Offer Severance?

No, severance pay is not legally required in Texas unless:

• It’s written into your employment contract

• It’s outlined in a company-wide severance policy

However, many employers offer it voluntarily to:

• Ease the transition

• Avoid lawsuits

• Preserve reputation

If you’re offered a severance agreement, read it carefully. You may be asked to waive your rights to sue, file EEOC claims, or discuss the layoff publicly. Don’t sign without reviewing your options.

Can I Collect Unemployment After a Mass Layoff?

Yes. If you’re laid off through no fault of your own, you are generally eligible for unemployment benefits in Texas.

What you’ll need:

• Recent pay stubs

• Details of your employment

• Proof the layoff wasn’t due to misconduct

The Texas Workforce Commission (TWC) handles claims. Apply as soon as possible—benefits are not retroactive.

Real-Life Example: Layoff Without Notice

“Luis,” a project manager in Austin, was called into a meeting and let go the same day—along with 80 others. No advance notice. No severance.

Luis later found out the company had over 100 employees and failed to follow the WARN Act.

With help from an employment lawyer, he filed a claim and received back pay for the 60 days of notice he was legally owed.

What About Discrimination or Retaliation?

Even during a layoff, your civil rights don’t go out the window. If you were selected for termination based on:

• Race, gender, age, or disability

• Pregnancy

• Taking FMLA or requesting ADA accommodations

• Reporting harassment or wage issues

…you may have a wrongful termination or retaliation case.

It’s worth talking to a lawyer if something feels off.

What to Do If You’ve Been Laid Off in Texas

1. Request written documentation of your termination

2. Ask about severance, COBRA benefits, and unused PTO payouts

3. Review any agreement before signing

4. Apply for unemployment immediately

5. Document anything suspicious (e.g., only older employees were let go)

6. Consult an employment lawyer to review your rights

How The Lange Firm Can Help

At The Lange Firm, we:

• Represent Texas employees in WARN Act violation cases

• Review and negotiate severance agreements

• Handle wrongful termination and discrimination claims

• Help clients recover what they’re owed after a mass layoff

Mass layoffs don’t mean you’re powerless. You have rights—and we’ll help you enforce them.

Final Takeaway

If you’ve been laid off in Texas, don’t assume your employer did everything by the book.

Whether you were denied advance notice, offered a questionable severance package, or suspect discrimination, The Lange Firm is here to help you navigate the legal side of a mass layoff.

Call us today to protect your income, your rights, and your next chapter.