A layoff takes place when a business determines that the best way to cut costs—especially during an economic downturn—is to relieve a specified number of employees from their duties. Though not legally obligated to do so, the employer usually offers employees a severance package, which may include bonuses based upon performance, and continued health benefits. Many companies give one week's severance pay for every year served, or some similar formula. However, actual performance may be a factor that affects how much severance pay an employee gets. Others offer stock options or bonuses, usually upon conditions of not divulging trade secrets to competitors. If an employee is not satisfied with the severance package presented to him, he may seek legal counsel. Employers are also required to inform laid off employers about continued health benefits offered through COBRA. When businesses decide to go through with layoffs, they must be in accordance with the federal (and state, when necessary) Warn Act.