Sharing the other side of the table since most posts here are from employees. I am an HR director at a mid-size tech company (~800 employees) and we just completed a RIF of 120 people on March 14. Here is what actually drives severance decisions from the employer side:
Our standard formula was 2 weeks per year of service, capped at 26 weeks. But we deviated upward for three categories: (1) employees over 40 because ADEA/OWBPA compliance is expensive if challenged — we offered them an extra 4 weeks, (2) anyone in a protected class who could plausibly allege discriminatory selection — extra 2-6 weeks depending on the strength of the claim, and (3) employees with access to trade secrets or who we needed to keep quiet — significantly enhanced packages with extended non-compete and non-solicitation periods.
The WARN Act issue @marcus.j_14 raised is real. We triggered WARN (29 U.S.C. 2101) because we exceeded 100 employees in a 30-day period. We gave the required 60-day notice. Companies that skip this step face 60 days of back pay per affected employee PLUS attorney fees. I have seen companies pay seven figures for WARN violations. If your employer laid off 100+ without notice, that is a strong claim.
Practical advice: always counter the initial severance offer. Anecdotally, 80% of employees who push back get more. The company has already budgeted for negotiations. The initial offer is almost never the best they can do. And if you are over 40, you have 21 days to consider (45 days if part of a group layoff) plus 7 days to revoke under OWBPA. Use that time.