EmploymentQuestion 1034 of 1605

Is a California employer generally required by law to pay severance to an at-will employee it lays off?

a.Yes, two weeks per year of service is required by statute
b.No, severance is generally not required unless promised by contract or policy
c.Yes, one month's pay is always mandatory
d.No, severance is illegal in California

Explanation

There is no general statutory requirement to pay severance in California. Severance is owed only if a contract, established company policy, or a plan promises it. (Final earned wages, however, must always be paid on time upon termination.)

Law Reference: At-will; severance

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