Severance in California

Californiaseverance & layoff calculator

State law shapes how much of your severance you keep, when you can collect unemployment, and whether your employer owed you advance notice. Here’s what applies in California.

Top marginal tax

13.30%

Severance is taxed at your state's top marginal rate when it pushes you into that bracket.

WARN Act

State mini-WARN: 75+ employees

California layers its own WARN-style protections on top of federal law. Cal-WARN covers employers with ≥75 employees and is broader than federal WARN.

Unemployment max

$450 / week

Up to 26 weeks. Unemployment insurance runs concurrently — you can collect benefits even while severance is paid out.

PTO payout

Required by law

California requires accrued, unused PTO to be paid out at separation regardless of your employment agreement.

Right to work

No

Non-right-to-work; union representation may be relevant to severance and grievance procedures.

Notes for California

Worth knowing

PTO is treated as wages and must be paid out at separation. Top marginal includes 1% MHST on income over $1M.

Sources: state department of labor, state department of revenue, and the U.S. Department of Labor ETA. Last verified: 2026-04.