I think it is a little mroe complicated than that. I think he could also elect not to go, no? Does getting cut mean that you are a free agent? I think so.
Actually it is very similar to how things work in Yahoo! Beleive it or not your league is based off of something, that something is the NFL. Yeah it is a little more complicated that your PC version but the overall procedure is still the same. The order goes through each team from the worst record to the best, and if no one claims KJ at that point, he becomes a free agent then. However, if the lions claim him and he refuses to sigh, he is not permitted to sign with another team until next year. This happened last year when Dion Sanders asked to be waived from the Redskins to sign with the Raiders before the playoffs. Old Coach Marty in San Diego claimed Dion first. Dion refused to play for him but Marty got what he wanted because Dion couldn't sign with anyone else. However, I doubt anyone wastes their time with claiming KJ unless they actually want him.