Severance in New Jersey

New Jerseyseverance & 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 New Jersey.

Top marginal tax

10.75%

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

WARN Act

State mini-WARN: 50+ employees

New Jersey layers its own WARN-style protections on top of federal law. NJ WARN (post-2023 amendments) requires 90 days notice and statutory severance of 1 week per year of service.

Unemployment max

$830 / week

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

PTO payout

Depends on employer policy

No statutory requirement to pay out unused PTO — check your employee handbook or offer letter for any contractual obligation.

Right to work

No

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

Notes for New Jersey

Worth knowing

Strongest layoff-protection regime in the U.S.: mandatory severance plus 90-day notice for mass layoffs.

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