Immigrants change jobs even more often, because they start out in a new country in less-than-rewarding positions and are looking for their place in life. Since most of us will pass through several companies, it pays to know as much as possible about the subject.
Qualify for unemployment benefits
Do not assume that unemployment benefits are owed to you no matter how you parted ways with your employer. To get benefits, you must lose your job through no fault of your own, that is, be laid off. If you quit on your own without good cause, walk off the job, or are fired for misconduct at work, you are not entitled to a single cent in unemployment. And I do not advise hiding the truth, because the Unemployment Office writes to the employer asking it to confirm all the information.
When you leave for personal reasons, do not count on your employer doing you a favor so that you can collect unemployment, because that favor would cost it quite a bit in the form of higher rates. Unemployment insurance is paid out of employers’ pockets, and the rates depend on how often an employer lets people go and how much in benefits they collect.
Avoid a gap in health insurance
When leaving a job, remember that you can stay on your employer’s health insurance for 18 months by paying up to 102% of the group premiums, which is usually less than the cost of an unsubsidized individual policy. Employees have this right under a federal law called COBRA, which applies to companies with 20 or more employees. It is worth comparing that cost, however, with a policy from the Health Insurance Marketplace (www.healthcare.gov) – losing job-based coverage lets you buy a policy there outside the usual enrollment period (you must choose a plan within 60 days before or after losing coverage), and depending on your income you may qualify for a subsidy.
It is worth using COBRA even if you start a new job right away, because the new insurance at your new workplace may not cover the first 3 months. Preexisting conditions can no longer be excluded from coverage – the health care reform law (the Affordable Care Act) prohibits it. You have at least 60 days to elect COBRA after leaving your job (counted from when you receive the notice or from when your coverage ends, whichever is later). Even if you get sick or have an accident during those two months, the coverage will apply retroactively once you pay the overdue premiums.
Back wages
When you part ways with your employer, you should receive any wages still owed to you. This is not a problem at large, reputable companies, which calculate the money to the penny themselves and send you a check. It can be worse with small businesses. Sometimes an employer spitefully withholds a departing employee’s final pay. What can you do then? You can ask the state Department of Labor to intervene. In New York State, you have to fill out the Labor Standards Complaint Form (LS 223) and submit it online or by mail. The Department of Labor is required to help you recover the money. In New York this takes a very long time, and many people prefer to sue the employer themselves. If the claim is not large, it is best to go to small claims court, where cases are heard quickly, within a few weeks, and you can manage without a lawyer (I recommend the e-book “Jak wygrać sprawę w sądzie małych roszczeń” (“How to Win Your Case in Small Claims Court”), available at www.PoradnikSukces.com).
In New York State, a lawsuit for unpaid wages under state labor law can be filed in court within 6 years. The state Department of Labor, however, accepts complaints only about wages owed for the last 3 years, and federal law gives you 2 years to pursue a claim (3 years in the case of a willful violation by the employer). Talk to a lawyer about your case.
What about unused vacation?
Is your employer required to pay you for unused vacation? Yes, if it committed to providing such vacation. Keep in mind, however, that no law, federal or state, requires an employer to give employees paid vacation. Medium-sized and larger companies offer paid vacation, but small businesses with just a few employees often do not. But if the company committed to vacation days, sick days or personal days, it must keep its word and pay out the benefits owed. The Labor Department helps in this area the same way it does with unpaid wages.
Your retirement plan
When you leave a job, you will probably lose the traditional pension (defined benefit plan) paid for by your employer. There are some retirement plans in which you can take the accumulated money with you. The most popular of them is the 401(k) plan. Whatever the reason you leave, you can always take the money you contributed yourself. The money your employer contributed belongs to you only if it is vested, that is, once you have earned the right to it. Depending on the plan, this happens all at once after 3 years or gradually, after 6 years at the latest. If you are not far from being fully vested in your 401(k) plan, it may be worth being patient so that you can take more out of your 401(k) account.
Do not cash out your retirement money; instead, be sure to open an IRA and roll the money over into it (you can have several IRAs). If you deposit the money into a regular account, it will be the same as liquidating your retirement plan, and you will have to pay income tax on the amount withdrawn plus a 10% penalty if you are not yet 59.5. You may be able to buy a new car, but you will strip yourself of security for your old age. It is hard to understand why so many people who change jobs, especially young people, cash out their retirement savings.
Bargain for severance
Severance pay is paid by larger companies to employees who leave involuntarily. Many companies pay the equivalent of one to two weeks’ wages for each year worked. Make use of your boss’s sense of guilt and bargain for higher severance. Try to exchange benefits you do not plan to use for cash. For example, if your employer offers the services of an outplacement firm (a kind of job placement agency) that you will not use, suggest increasing your severance instead.
Part on good terms
Whatever your true feelings, take a polite leave of the company owner, your boss and your coworkers. Ask your boss or more important clients for references. They will come in handy in the future when you are looking for a job. If there are any commendations or awards in your personnel file, try to get copies of them. Strictly speaking, personnel files belong to the employer, but the folks in human resources will usually be happy to let you copy them.
Job search costs and taxes
In the past, the costs of looking for a job in your current field – employment agency fees, preparing and sending out a resume, travel to look for work – could be deducted from your taxes. Since 2018, employees can no longer do this, because the IRS does not allow so-called miscellaneous itemized deductions, which is where these expenses belonged. Self-employed people still deduct the costs of running their business.
Moving costs and taxes
Since 2018, ordinary employees also cannot deduct moving expenses related to a job change. Only active-duty members of the military moving under orders have kept this right, and since 2026 so have employees of the U.S. intelligence community. The IRS gives the details in Topic no. 455 and in the instructions for Form 3903, www.irs.gov.
Elżbieta Baumgartner
Elżbieta Baumgartner is the author of many financial and consumer advice books, including “Otwieram biznes” (“Starting a Business”) and “Praca w Ameryce” (“Working in America”) (255 Park Lane, Douglaston, NY 11363, tel. 718-224-3492, www.PoradnikSukces.com).
Updated October 2026.
