Severance Pay Laws in California 

A severance pay may be provided by your employer if you are fired or you resign on your will in California. These packages include some benefits along with a continuation of money. If a contractual obligation or employment policy comes into play the employers do not provide these severance packages in California. You should understand all the terms of this package and you can also negotiate with your boss!

Some FAQ’s On Severance Pay Laws In California:

Are Employers Entitled To Receive Severance Pay?

Employers are not always entitled to receive severance pay. There may be in some case that the employee decides to termite the relationship with the employer. In this case, the employer is not compelled to give any severance to that particular employee.

Why Do Employers Offer Severance Pay When It Is Not Required?

There are many reasons that an employer offers severance pay. There might be a case that a business is not going good and it needs to fire some of the employees where those employees can negotiate with the employer to get some severance pay. Another scenario can avoid potential litigation when some disputes occur between the employer and the employee.

What Terms Are Mainly Included In Particular Severance Agreements?

  • Confidentiality
  • No admission of liability
  • Not a chance of admission in the present as well as future employment.
  • Non-disparagement, often unilateral.
  • General release with a civil code section 1542 waiver releasing all unknown or known claims.
  • Return of all company property and also non-solicitation of customer clause.

Does The Employer Have To Pay The Employee For A Release Of Claims?

The employer can ask the employee to release all claims the employee may have against that particular company. Some considerations are meant to be provided for the release of the employer’s rights. This consideration includes something of valuable important for both sides. These considerations not only come in form of payments but also agreements when an employee is sacked.


Do Employees Over 40 Years Or Above Get Any Kind of Special Considerations?

The OWBPA (Older Workers Benefit Protection Act) protects all employees who are 40 years and above. If any kind of age discrimination comes into play there are certain requirements also. The employee should consult with an attorney in which case a time period of 21 days is given to the individual to consider the agreement and 7days are given to invoking the clause. The 21 days period can be waived but the 7 day period cannot be waived.