Is severance pay required by law in the United States?
No. The United States has no federal law requiring severance pay for at-will employees. Severance is a matter of contract — it exists only if your employment agreement, company policy, or collective bargaining agreement provides for it. The industry norm for negotiated severance is 1–2 weeks per year of service. Employers with 100+ employees must provide 60 days' notice (or pay in lieu) under the federal WARN Act for qualifying mass layoffs.
What is the WARN Act and who is covered?
The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time employees to give 60 days' written notice before a plant closing or mass layoff affecting 50 or more workers. Failure to provide notice makes the employer liable for up to 60 days of back pay and benefits per affected employee. Some states (California, New York, Illinois) have 'mini-WARN' laws that cover smaller employers.
Can I negotiate severance if I am being laid off?
Yes. Even without a contractual right to severance, you can negotiate. Leverage includes: potential legal claims (discrimination, retaliation, wage violations), departure timing, cooperation with knowledge transfer, and waiving the right to sue in exchange for a severance package. Always have an employment attorney review any severance agreement before you sign — you typically have 21 days to consider the offer (45 days for group layoffs) and 7 days to revoke after signing under the ADEA.