Illustrative scenario: Does California Require Severance Pay?

Laid off in California - am I entitled to severance?

I publish illustrative scenarios prepared by my practice. All participants and conversations are fictional. The fictional posts are not posts by real users, accounts of client experiences, or reports of actual results.

Illustrative scenario prepared by my practice.

TL;DR - Key Takeaways About California Severance

Not legally required: California law does NOT require employers to pay severance. It's voluntary unless promised in a contract, handbook, or union agreement.
But highly negotiable: Employers want you to sign a release of claims - that release has value. Use it as leverage to negotiate better terms.
WARN Act exception: If 75+ employees are laid off without 60 days notice, you may be entitled to 60 days pay under California's WARN Act (not technically "severance" but same effect).
21-day rule: If you're 40+ and they want you to waive age discrimination claims, you must get 21 days to consider (45 days for group layoffs) plus 7 days to revoke.
What to negotiate: More weeks of pay, extended health insurance (COBRA subsidy), outplacement services, equity vesting acceleration, neutral reference letter, non-disparagement carve-outs.
Check for claims first: Unpaid overtime, misclassification, expense reimbursement, discrimination - these make your release worth MORE to them.

For informational purposes only. Employment law varies by state and situation. Consult with an employment attorney for specific advice.

Hypothetical question

Got laid off yesterday from my marketing role at a tech startup in San Francisco. Been there 3 years, no warning, just "position eliminated due to restructuring."

They're offering me 2 weeks severance in exchange for signing a release. My friend said California requires severance pay and I should negotiate for more. Is that true?

I'm at-will, no employment contract. Salary was $95K.

Illustrative response

Is there any recourse if my employer is refusing to negotiate at all? They keep saying "this is the standard package, take it or leave it." I've been there 7 years and they're only offering 2 weeks.

I asked about potential misclassification issues (I was "exempt" but did the same work as non-exempt colleagues) and they basically told me to sign or get nothing. Feels like bullying tbh.

Laid off in California - am I entitled to severance?

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