Separation notices provide former employees with information on their right to file for unemployment after a position.
Although requirements have existed for many years, during the pandemic, states were officially required to notify former associates of their rights in order to receive federal aid. Federal guidance, however, was broad, which resulted in states complying with the requirements in varying ways.
Since the pandemic ended and federal aid expired along with it, states have diverged in how they handle these separation notice requirements. Some states have chosen to expand on their initial requirements while others have allowed these requirements to expire either in part or in whole.
Individual State Requirements
What is required for your workforce depends on which states you are located in, and requirements can change with updated legislation at any time.
As of August 2025, four states require notification and provide specific penalties if notice is not provided. An additional 20 states require individual notification but have no specific penalty defined. In five states, voluntary notification is either recommended (one) or optional (four). The remaining states require an unemployment insurance (UI) poster to be accessible to all employees.
Struggling with Separation Notice Compliance?
We are here to help!
From required states to nationwide coverage to custom forms, your unemployment claims manager can create an offboarding compliance solution that best fits your company’s needs!
No Worry Compliance
Your unemployment claims manager provides timely and accurate submission of required information and documentation to meet individual state requirements. With continuous monitoring of new and changing separation notice requirements, you remain compliant and avoid missing deadlines.
Document Retention
With strong data security, your unemployment claims manager securely stores delivered communications and can provide copies of notices upon request.
Ease of Implementation
A transition to this service includes an easy, straight-forward implementation for clients who already utilize our Employment and Wage Verification (EWV) service. The existing EWV file satisfies nearly all data points needed for your unemployment claims manager to process separation notices. A brief data review will confirmation which, if any, updates or changes are required for each client.
About Us
For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.
Contact us today to see if your organization could benefit from our services.
Are you already working with us and need assistance with an HR or unemployment issue? Contact us here.
The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources. Some information was provided by our friend, Darby Gibson, Client Marketing & Insights Specialist, at Thomas & Company.
(Images by: Peshkovagalina and Rawpixel)
