What does a typical severance package look like in America?
Posted by mronionbhaji@reddit | AskAnAmerican | View on Reddit | 360 comments
My understanding is that employment in the states means that companies can lay you off same-day.
I'm curious what kind of severance packages Americans get when this happens?
I've heard Americans get huge severance packages, much higher than us in Europe. So although less or no notice is given, pay outs are large.
I remember Elon offering 2 years salary to employees laid off during his doge time, but not sure if that actually happened or not.
Can being laid off actually work out quite well financially for Americans if you find new work relatively quickly?
dead_dw4rf@reddit
Typical severance is nothing.
ericbythebay@reddit
Layoffs are a complex area with requirements varying by state.
Depending on the size of the company, they company make have state and federal requirements to notify workers and the community in advance.
In my case, I worked at the company for eight months, they gave us notice 90-days notice before they terminated us. I got eight weeks of severance.
Derwin0@reddit
Hard to say, as every single company is different.
Cantseetheline_Russ@reddit
Depends on the position and company. Pretty much exclusively white collar salary exempt. My current company typically does 4 weeks std to start and then add a week for every year of employment plus all accrued PTO and any earned but unpaid bonuses.
Marthurio@reddit
I think it's just the middle finger, but some may throw in an ICE report. YMMV.
Appropriate_Copy8285@reddit
You usually get a "dont let the door hit ya, where the good lord split ya" severance package.
ZT99k@reddit
Get your shit and get out.
Occasionally, we tossed your shit in a box, so some may be broken and covered in coffee, now get out.
Antioch666@reddit
Unless you are a CEO or under special conditions you will not get an actual kick when kicked. Idk what you have heard but severence packages are not that common.
Unsteady_Tempo@reddit
Of all the people in the US who get terminated, I would wager at least 95% receive zero compensation beyond the pay they're owed for their hours work up to their termination date. The majority of worker who are terminated get no notice.
Ok-Nefariousness-927@reddit
Most jobs don't give you a severance in America.
It's not something that's common because of unemployment insurance.
TheSpeedyBee@reddit
They don’t kick you on the way out. Severance packages are the exception, not the rule.
justforthisbish@reddit
Top comment that needs to be pinned.
Tech industry is not the norm for layoffs. Getting a severance is a godsend but never guaranteed either.
EpyonComet@reddit
Severance isn't the norm in tech either. Only a few of the big household-name companies, unless you're an exec.
sevseg_decoder@reddit
I mean that is just incorrect..
Yall are deep into r/confidentlyincorrect territory
Radiant_Music3698@reddit
Odd, I was laid off from Enersys and Tesla. Making less than 35 an hour both times if 9 remember correctly. Got a 3-6 month pay severance. I assumed I didn't get it from US Cold Storage and Jiffy Lube because I quit and was fired respectively.
TheyMakeMeWearPants@reddit
That's not true. I've seen severance given from multiple tech companies that you've almost certainly never heard of. And not to just execs
appleswitch@reddit
This is not true at all. Basically all VC funded tech companies give some severance.
Warlordnipple@reddit
Yes because those companies are risky and severance is part of the compensation package when people sign on
Cerulean_IsFancyBlue@reddit
Exactly. Tech in the US became famous for free drinks, stock options, long hours, and robust benefit packages, including a substantial severance. The only thing that was actually universal across the industry was probably the long hours.
The_Law_of_Pizza@reddit
It's definitely not the majority of jobs that offer it, but calling it an "exception" is a little bit of an exaggeration.
Severance is common across the white collar big corporate world - which is of course just a subset of the job market, but a pretty substantial chunk of it.
TheSpeedyBee@reddit
1% of all jobs is an exception.
The_Law_of_Pizza@reddit
It's not 1%.
It's more like a third.
AlarmingAttention151@reddit
Do either of you have sources for your stats?
The_Law_of_Pizza@reddit
https://www.ziprecruiter-research.org/survey-of-recently-laid-off-workers#:~:text=1%20in%203%20laid%2Doff,or%20plan%20to%20do%20so.
TheSpeedyBee@reddit
That’s for layoffs only. There are more ways of being terminated than being laid off.
Only two states require severance, no Federal Regulations, and contractors don’t ever get it.
The Bureau of Labor doesn’t even track this because it is so wildly varied across circumstance.
This is especially important in light of OPs question comparing to Europe, where it is regulated and more often required. By that measure, it virtually doesn’t exist in the US except for executive level jobs.
LopsidedGrapefruit11@reddit
The OP asked about layoffs
Cyoarp@reddit
I think he was using it as a general term for being fired. He isn't a native English speaker and in much of Europe it is nearly impossible to be fired in anyway other than what an American would call a layoff.
LopsidedGrapefruit11@reddit
Ah! That would make more sense.
sgtm7@reddit
When searching, the AI results says there are no definitive statistics for it. Other search results say globally 42% offer severance, and that the US is behind. For the USA, most results say around 25%, but one said 90% of companies offer some kind of severance but it is only a small amount of them that have a written policy with defined amounts. So maybe the 25% is based on only those that offer severance with written policy and defined amounts.
MyUsername2459@reddit
There is no way, on God's Green Earth, that 1/3 of jobs in the US offer a severance package.
More like the 1% comment you were responding to.
The_Law_of_Pizza@reddit
I've already posted one source downthread, but here is another just for you:
https://www.bloomberg.com/graphics/2024-cost-of-layoffs-quantified/
Your perception might be related to to your career field - that rough third isn't split evenly across firms. Severence is almost unheard of in the blue collar fields, but is very common in the white collar world - and once you enter the "big corporate" world it is almost universal.
Djinn_42@reddit
Maybe higher level white collar. Definitely an exception for lower level.
Emotional-Loss-9852@reddit
Most white collar publicly traded type jobs will pay severance to laid off full-time employees.
Djinn_42@reddit
I've been employed in that environment for a few decades and seen what I stated.
Emotional-Loss-9852@reddit
Interesting, I’m still relatively young but both companies I’ve worked for (a defense contractor and a bank) have had several layoffs while I was there and there was always severance. Every friend I’ve met in touch with professionally and from college has also gotten severance when they got laid off. I guess that’s why anecdotal evidence isn’t always reliable.
Big-Barracuda-9407@reddit
I have never seen anyone get a severance
asielen@reddit
This can also be different by state with worker protections. California companies tend to give severance for layoffs because of the warn act. Basically they have to have 60 days notice of layoffs which they can get around by just paying out the 60 days as severance. Otherwise they'd have to keep people around after they already tell them they are getting laid off.
TheSpeedyBee@reddit
California and Massachusetts are the only two states that gave laws regulating it. Hence its tie to Tech and Silicon Valley.
danny_ish@reddit
I’m an engineer who has a 4 year degree, working in a building full of similar. Some have been working long enough to be managers or pmo’s. Small company. Severance is common here for low levels if they have been here 5+ years, the norm for 10+ years, and the norm for all managers and pmo’s. I’d consider this a lower level white collar job, would you? Office full of Bachelor degrees, some associate degrees and some masters but mainly bachelor
Thin-Telephone2240@reddit
Two AAS degrees in electronics, various certifications and licenses including Federal. Worked as a Senior Engineering Tech in a defense industry company doing an Engineer's job. Product design and test, manufacturing engineering, failure analysis and much, much more.
When the final round of lay-offs caught me the severance offered was 1 week pay per year of service. Plus all accrued PTO hours and any other funds owed. For me that was close to six months pay. I took it and decided I was ready to retire anyway.
Big-Barracuda-9407@reddit
Still a very small amount of jobs in the US offer a severance. It it’s extremely uncommon
beyondplutola@reddit
Yeah it’s highly variable. To answer OPs question, I was laid off from a US telecom at director level. I received 6 mos salary and retained my stock options, which would continue to be cashed out over their 3 year schedule. Those would be the equivalent of about another 6 month salary.
Own_Thought902@reddit
Listen to you talking like a one-percenter!
Not_an_alt_69_420@reddit
The most "severance" I've ever gotten is a full day's pay when I get fired/laid off a couple hours into my shift
CultofEight27@reddit
For the most part people are employees at will, which basically means that the company has no obligation to pay severance.
Filing unemployment is the most common thing following a layoff, in my state it’s around 60% of gross salary but capped at around $1000 a week. You are obligated to continue looking for work and document it while claiming benefits. If you earn more than a certain amount in a week the system automatically closes the claim.
Tech companies may offer a slightly better package generally speaking but that’s a very small part of the population as a whole.
myOEburner@reddit
I got 9mo of pay to voluntarily leave a place before real layoffs started. My boss was shocked that I volunteered. I did it because I had another job lined up. No employment gap. Resigned on a Friday, started on a Monday. Timing was perfect.
EV9110@reddit
Depends on the career, longevity, and the position at the company.
grax23@reddit
I don't know about huge. From reading here it seems a week pay for every year is normal if you get any. I'm not in the US but I got a month a year plus to the end of the month (for this reason, layoffs are usually at the end of the month) Since I have been the same place for 20+ years I also get funds towards any training for joining a new employer and I have stock options so I won't go hungry. But the norm here is a month for every year unemployment insurance too that adds 2 years in worst case for most so it's a way different thing to be laid off here
Traditional_Entry183@reddit
I worked for a retail chain for 14 years. When they announced that they were closing the store, and no one would be allowed to transfer to another location and/or stay employed, we were told that we would get a severance package so long as we stayed working there at whatever hours we were scheduled until the very last day the store was open, whenever that ended up being (it was a range, not a date). We were given a weeks pay for every year we'd been with the company, but the max was ten.
So I stayed, getting that ten week check was very meaningful. But a lot of people did not.
DankBlunderwood@reddit
I was laid off once. We got two weeks pay for severance. I think one months pay is the usual arrangement, depending on the nature of the layoff.
old_Spivey@reddit
I got 60% of my full pay and 100% health insurance until I die.
ProfessionalCat7640@reddit
What was your job?! Damn, I’ve never heard of this!
Status-Dog4293@reddit
King of imagination mountain, where wishes and dreams grow on trees.
old_Spivey@reddit
Legal settlement
mckenzie_keith@reddit
That is very generous. Enjoy it!
drdpr8rbrts@reddit
Frequently, nothing. I was laid off from a company I had worked for for 11 years. I got 2 weeks severance.
Most people get a very small severance, in exchange for signing paperwork that keeps you from suing.
But the majority of people who lose their jobs get nothing.
BigBonedMiss@reddit
I got four weeks pay as severance in exchange for signing a contract that I would not apply for unemployment.
I signed and was then told by someone that it was super illegal for them to do that.
10thousndreflections@reddit
Virginia would give you half your pay for 6 months. You might not be able to live off that but if you can it's a better deal. Plus it fucks your former employer.
blay12@reddit
Well, kind of - they give you half your pay until that amount hits the max benefit amount, which is now $378/week ($1512/month if you want to defer paying taxes on that income until the following year, or $1360/month if you opt to take a flat 10% for fed taxes). So basically they’ll give you half your pay up to salaries of about $36K/year and then for anything past that you’re capped at $1512/month.
It’s definitely a useful amount to have (as someone who had to go on unemployment nearly a decade ago), but still not a ton, especially depending on where you live.
10thousndreflections@reddit
They must have lowered the amount because they paid our more 20+ years ago when I collected.
BigBonedMiss@reddit
They were so awful 😭
Hot-Helicopter640@reddit
Curious, why would a company prevent you from getting unemployment? As far as I understand, the government pays unemployment benefits after layoffs, not the company.
buried_lede@reddit
Thats illegal and unenforceable—non binding.
kit0000033@reddit
Should've negotiated... They got off easy there.
Cerulean_IsFancyBlue@reddit
I know that people may get tired of hearing this, but I have to say it: the negotiating power between an employer and employee is usually very asymmetrical, and a UNION can be a big help.
Djinn_42@reddit
4 weeks of pay? Did you not understand how much pay you can get from Unemployment? Or did you already have another job lined up?
UnderaZiaSun@reddit
I hope you applied for unemployment
BigBonedMiss@reddit
No because I have still been working part time on the gig apps so it wouldn’t really be that much money 😭
drdpr8rbrts@reddit
Ugggh. That's awful.
GooseyDuckDuck@reddit
Was that on top of a legal minimum?
drdpr8rbrts@reddit
There was no legal minimum. barring a contract (like a union collective bargaining agreement) or an individual employment contract (very rare) employers can fire you on a moment's notice for no reason, a good reason, a bad reason, any reason, and they owe you nothing.
They can't fire you for a discriminatory reason. We have several "protected classes" and you can't fire a person for belonging to a protective class. (Women, workers over 40, minorities, etc.)
But for the most part, fired or laid off workers aren't entitled to anything. Most can file for unemployment insurance, and it's substantial, but it doesn't last long and it's only a fraction of your previous wages.
Stein1071@reddit
In indiana you can get $370/week before taxes IF you aren't terminated for cause!!!
I'M RICH, BITCH!
show_me_your_secrets@reddit
I’ve been working in tech for 26 years and have never had a severance package, but I have been stiffed on my final check. Which sucks. Well yeah, just file a complaint, sure then you actually end up settling for $0.30 on the dollar five years later.
SnooChipmunks2079@reddit
I was laid off from a company that was failing. They laid off the whole company. Severance was allowing us to take our desk chairs and computers if we wanted them.
drdpr8rbrts@reddit
That's hilarious!
goose-and-fish@reddit
When i was laid off after 2 years employment as an engineer in the automotive industry i received 1 months salary. I think that's probably typical for middle class white color workers.
10thousndreflections@reddit
Racko20@reddit
I work with plenty of Asian engineers
10thousndreflections@reddit
Ok
baddspellar@reddit
I was fortunate to get 10 weeks after almost 4 years. Companies in the US owe nothing
WanderFish01@reddit
I’ve been unlucky enough to be laid off 3 times. Each time it’s been 1 week’s pay for every year of service.
Maleficent_Sea547@reddit
It totally depends. I’ve seen people getting nothing, and on the high side a month of pay for every year of service.
7empestSpiralout@reddit
My company give you 16 weeks pay if you choose to be let go vs try a PIP
dumptrump3@reddit
In Pharma, severance was standard. Over my time in sales it went from very generous to bare bones. My first time, I was let go from Pfizer with almost 2 years of severance and a year of health care. I had been with them for 22 years. My last, when I retired from Boehringer, was 16 weeks and an offer to sign up and pay for Cobra for my health care.
Bear_necessities96@reddit
There’s not law that manage severance so most workers don’t receive anything after been fired, they one that got some kind of severance are high skilled jobs/ managerial jobs.
DrBlankslate@reddit
Severance almost never happens with American jobs. It’s cute that Europeans think that it’s just a standard thing.
tcspears@reddit
It’s different per state, as each state has their own laws and rules for these sorts of things.
Because we don’t tend to have contracts, both the employer and the employee can negotiate things, and employers tend to be much more generous (as you mentioned).
There are pros and cons to at-will employment, I’m not saying it’s all good, but either party can just end the relationship with as little notice as they want.
The severance package will vary depending on the reason for the severance, and it’s usually based on length of employment. The last few places I worked that had layoffs offered 2-3 weeks pay for every year of service and covered health insurance for 6 months or a year after. It also depends on your role, and much of it can be negotiated, so it will vary a bit.
Responsible_Side8131@reddit
Severance packages are not very common
Accomplished_Mix7827@reddit
The one time I was let go from a job, I had to fight them to even get paid out for my unused PTO (which they were legally required to give me. I had to threaten to sue to get it).
Severance is rare and generally only a thing for those who are already on the wealthier side. Most of the time, you're lucky if the company just isn't a massive dickbag about it and doesn't kick you on the way out
malinagurek@reddit
I think my severance was pretty standard: two weeks and all unused PTO. I also got to maintain my current health insurance for three months after, still covered my them.
A friend of mine, different industry, was fired, not laid off, and I remember thinking that the company was just throwing money at them—quite the golden parachute. I think they had to sign something to not sue the company. They were a difficult employee but the company wasn’t clean either. Just imagine what a pain in the ass you have to be to get paid to leave, lol. As an aside, we’re not friends anymore.
jafnharri@reddit
My company is closing our factory this year. We are being offered 2 weeks pay for each year we have been with the company (whole years only so if at the end you've been there 4 years and 9 months, it only counts as 4 years) plus a small additional bonus, which is subject to the bonus tax rate so is less an incentive than the company thinks. The condition is that you have to stay on full time until the very last day. For some people who have been there 10+ years. It's totally worth it to stay. But for those who have been there 2 years, not so much.
ThirdSunRising@reddit
You have to be pretty high up to get a “huge” severance. C-level executives get those. We get garbage.
If you work at a big corporation, the standard severance is 60 days. Technically they can just give you 60 days’ “warn” notice that your job is ending and that’s it, but big corporations usually figure you can do more harm than good in those sixty days so they often lay you off with full pay for that time.
LMrningStar@reddit
From what I've seen it can go like this: "Sign this NDA and complete release of liability and you'll get a token amount of money (about a weeks worth of pay). Otherwise, don't let the door hit your ass on the way out. "
alphaturducken@reddit
Mine consisted of a high five and a "Good luck out there"
markforephoto@reddit
I got 3 months when I was laid off a tech job. Bigger name companies give more. When my sister got laid off Twitch I think they gave her 6 Months.
LongOrganization7838@reddit
Its common but not the norm and what's included is basically up to the company, I've never gotten severance but I've also really only in blue collar where its not nearly as common
Curmudgy@reddit
When the minicomputer manufacturers started going downhill in the late 80s, early 90s, a few gave generous severance packages to all their full time employees.
One was so generous that reports came out that their HR people took it en masse, making it difficult for the company to administer the severance for everyone.
SRQmoviemaker@reddit
What's a severance package?
NorthofBham@reddit
It's the large box they provide to put your shit in, so you can expedite your exit.
SRQmoviemaker@reddit
Damn ive only gotten a grocery bag.
Curmudgy@reddit
It’s a small chip implanted in your brain to keep your work life memories separate from your home life memories.
ComplexPatient4872@reddit
Not to mention that that in The Sunshine State, unemployment is one of the worst in the nation.
JasminJaded@reddit
Severance is generally 2 weeks pay for every year worked. To avoid lawsuits.
joshisnobody@reddit
Hahahhahahahahahahaha we are so fucked as a country for labor/workers rights. Ive seen countless companies tell not a single employee they are closing. Workers show up in the morning for their scheduled shifts only to find a sign on the door that the place is permanently closed.
GLight3@reddit
It's 1-2 months salary + your remaining time off paid out as if you worked it. It's not much.
damnyankeeintexas@reddit
2 weeks per year of service. For a max of 1 year. I have been at this company 25 years and that’s how it always works here.
BuildNuyTheUrbanGuy@reddit
🤣🤣🤣🤣 "fuck off" is the only one I've gotten
Double-Award-4190@reddit
What is this severance package you speak of? :-)
When I gave notice of retirement, my company paid me for a year via regular biweekly payroll and monthly bonuses.
However, this is very unusual and progressive for an American company.
CdOneill@reddit
A handshake along with your last paycheck is customary in my and many industries.
milliemargo@reddit
What's a severence package?
Maybe a big corporation will give one if it was a mass layoff but youre lucky if you get a weeks pay.
Usually you just file for unemployment
DasArtmab@reddit
Mine was 2 weeks for every year
jacowab@reddit
Idk I've never had one, that's like a career goal to get to a position with a severance package.
Myname3330@reddit
A standard package is about 6 weeks notice, two weeks pay upon termination, and vacation cash out. A really nice employer will also allow you to drain your sick leave provided you have it. So for example a decently tenured employee might have 14 sick days so upon notice they’d be obligated to work two weeks, then get the next 2 “off” before their termination date. At which point they’d sign their severance and get their two weeks pay and vacation.
That like, a run of the mill corporate employee though. The higher up you are the better the compensation, generally.
Of course many Americans get no severance at all as well.
SouthCotton1979@reddit
I laughed out loud at this one.
BigPapaJava@reddit
Big severance packages are rare and usually only go to high ranking executives.
For most workers, the “severance package” is absolutely nothing except possibly allowing the worker who’s being laid off to collect unemployment insurance, which varies from state to state.
uncle-brucie@reddit
5 minutes notice
Weightmonster@reddit
The most common severance package is no severance package.
dystopiadattopia@reddit
Lol you're cute
PriorSecurity9784@reddit
I think more common in professional jobs.
They sometimes offer something to get employee to sign off on non-liability or something.
Giving some off ramp (a month or two) also makes it less likely for an employee to lash out in some unpredictable way.
Managers also are people who sometimes have feelings, so allowing them to fire an underperforming person with a little severance is better than having them feel bad and keep and underperforming person hanging on trying to get them to improve
Dave_A480@reddit
If you work in a white-collar office job you *may* get a severance package.
If you work in retail, or any job that doesn't require a college degree? Nope, just fired....
cbpars@reddit
I don’t have a degree, and I was laid off last fall. My severance package was >$50k.
Royal_Success3131@reddit
A severance package is a one in a million windfall. Nobody gets a severance package unless you are in upper management, or the tech industry.
OkElephant1931@reddit
I’ve worked for a couple Fortune 500 companies, non-tech. Both offer severance as part of general layoffs. Not for terminations.
The amount of severance varies. I’ve seen as much as two weeks pay per year of service. I’ve also seen like 20% of that amount.
It is often tied to signing an agreement around confidentiality and not suing your employer. They do get something out of it… I’ve seen class-action lawsuits around age discrimination following some layoffs.
musing_codger@reddit
As many have said, there is no "typical", but there are some very generous severance packages. It's not uncommon for unions to require good severance packages as part of contract negotiations. They are also common in industries with a history of volatility.
I worked in oil and gas, and we generally always had good severance packages. Even better were our "change-of-control" packages. They were a stepped up severance you got if you were laid off as part of a merger or acquisition.
I ended my career with a voluntary severance as part of a change of control. I could have opted to keep my job, chose to take the severance. My package included 2 additional years of pay, 2 years of bonuses at 1.5x my normal bonus target. Pay for my unused PTO plus for the PTO I would have accrued the following year (7-weeks), plus a bump in my pension, plus immediate vesting of all of my restricted stock grants. All together, before taxes, it was worth around $1,000,000 to get laid off. Taking it was not a hard decision.
JTMoney336@reddit
It varies by the job. I worked at a place where the employees came to work to discover a sign on the door daying the business was shut down. No severance there. Another was a retail location that closed and gave everyone 2 weeks pay. My current job will give you an option of other jobs within the company, or you can take a package, which usually includes at least 6 weeks of pay.
qu33nof5pad35@reddit
My employer doesn’t offer that.
IcyBus1422@reddit
I've been laid off 3 times in the past 10 years. I've only received 1 severance package
Csherman92@reddit
Many places do not offer severances. They aren’t required. It would be nice if they were
SpanishFlamingoPie@reddit
$0 <---- They look like this most of the time.
No_Entertainment_748@reddit
Was in a situation with mine where I could have taken one. It was 1000 for every full year that I worked there plus whatever vacation time I had and it came out to 9800$ before tax(yes they tax you on severance here) and around 7500$ after tax for 7 years of work. The choice was take it and be done that day or you have 6 months to find a job within the company and if you dont you walk away with nothing. Chose the 6 months and found one in 4
WestWillow@reddit
Been mad off twice. First time I got two weeks of pay. Second time I got six months. The second time I found a job after a month. It was my best year financially.
WillGrahamsass@reddit
A kick in the ass if you are lucky.
atamicbomb@reddit
Severance packages are for executives at major companies. They can be tens of millions of dollars in some cases.
Most employees only get unemployment, assuming you aren’t fired for cause. They may get them if the firing was illegal in exchange for not suing
Choice-Marsupial-127@reddit
Severance packages are rare. I forgot about the DOGE offers. I’d be shocked if that wasn’t a lie.
SummitJunkie7@reddit
Severance packages are not typical.
savvvie@reddit
lol
Thin-Telephone2240@reddit
I've been offered a severance package twice in my life. I'll get to that in a bit.
I am not aware of any requirements under the law in terms of severance payments. However many larger companies do make some sort of offer. Usually requiring you sign an agreement that the severance package resolves any and all claims you may otherwise attempt to bring. There may also be a non-disclosure agreement.
When there is a labor union involved the contract with the union could have all sorts of severance requirements. I've only heard of such things, never have been in a union.
My most recent experience was as an hourly worker in an engineering capacity. My last employer paid me 1 week for each year of service. Also paid out all PTO hours. For me this came to about six months pay. After that, I retired.
Many years before that job my employer announced they were "Changing their paradigm" on how the work the group I was in would be done going forward. Eliminating 220 jobs. The offer was $15,000 to immediately "voluntarily self-terminate". I took the money.
macoafi@reddit
A month is what I got for severance when I was laid off. I think they actually were only going to do 2 weeks, and my state doesn’t require that unused PTO get paid out, but I managed to negotiate paying out my 2 weeks of PTO so that PTO+severance=1 month.
Spiel_Foss@reddit
Americans rarely are often anything in severance beyond limited pay if that.
You've heard back info.
chipperlew@reddit
Typically? They fire you and make sure you can’t get unemployment either.
Paul721@reddit
The main reason companies in the US offer severance is in exchange for signing away your rights to sue them. Lawsuits against companies doing large layoffs are successful at a surprisingly large rate, especially for employees over 40 who can sue for ageism. So its cheaper for the companies to provide some form of severance in exchange for promising not to sue.
Zamorakphat@reddit
“Get out of my office, now. You’re done.”
TipsyBaker_@reddit
The typical severance package is one that doesn't exist. Getting one is far from typical at all
LukeCH2015@reddit
theyre very rare, most wage earners will never have access to a severance package in the event of a job departure, the most likely way for an average person to encounter one is in a large scale mass layoff,
DadPuncher69@reddit
I was laid off from a tech company a few years ago right after the holidays. I got my entire yearly bonus (a couple thousand), and three months of pay. It really came in handy because I didn't find another job for almost 2 years.
Per_sephone_@reddit
Hardly anyone gets severance. That's not a normal thing when you get laid off. Most companies just say byeeeeee and don't let the door hit ya.
SPFeveryday@reddit
I got 3 months and I was working in tech in an admin role not an engineer. I stretched it and with unemployment, I was able to be without work for 7 and a half months, I was so burned out and needed a break. I was also able to qualify for bankruptcy and get rid of 100k in debt so it was a blessing in disguise.
OK_Stop_Already@reddit
you only get severance at like more cushy jobs. Regular jobs don't really do that. You'd get a PTO payout maybe... if you have any. And up to a certain limit.
Gmhowell@reddit
In a lot of jurisdictions (all?) PTO is considered deferred compensation so it has to be paid out.
OK_Stop_Already@reddit
Yeah that's what I was talking about when I said PTO Payout.
Snipes1986@reddit
I wouldnt say its normally cushy jobs. But rather high demand low density jobs. The standard severance at the last company I worked for was 1 week of standard pay for every year worked up to 10 years and 2 weeks of pay for every year worked if you had been there for more than 10 years. Senior positions recieved the normal severance along with a buyout equal to half a years standard pay.
GothWitchOfBrooklyn@reddit
And its taxed differently. I once got 4 weeks of severance pay and it was like maybe 1 paycheck after taxes.
Brave_Speaker_8336@reddit
To be clear, it may be withheld differently, but it is not taxed differently. Same with things like bonuses of all kinds, stock compensation, etc — many people are under the impression that they’re all taxed at different rates when they’re actually all taxed at the same rate
Proof-Emergency-5441@reddit
No, bonuses have a very specific stipulated rate.
From the IRS website, section 7 on supplemental wages "Withhold a flat 22% (no other percentage allowed)."
https://www.irs.gov/publications/p15#en_US_2026_publink1000202354
Brave_Speaker_8336@reddit
That is the withholding rate, the “tentative” amount until you actually do your tax return.
The actual tax rate is the exact same, eg after you do your tax return and either get your refund or pay off the extra taxes you owed, you will have the same net pay whether you got a $50k year end bonus or whether you got a $50k raise to your salary
Roborana@reddit
It was probably taxed at the supplemental rate, which is 22% for federal and varies for state/local taxes.
Snipes1986@reddit
Yeah. They tax it like you would make that amount every week for the year. Thats why it is important to actually use a CPA come tax time. You should have gotten that money back when doing your taxes.
Notansfwprofile@reddit
A coworker of mine got fired for having cancer, 40 years of service.
Gmhowell@reddit
lol. “You have twelve minutes to leave the property or we will call the cops.”
Senpai2Savage@reddit
A middle finger and they send you your final checks.
NaturGirl@reddit
I've never gotten any. The most I've gotten is benefits for a couple months after being laid off. With the option of paying a huge expense for COBRA for up to a year I think.
12B88M@reddit
If you have unused paid time off or sick days, and the boss is feeling generous, you might get that pay.
Otherwise, severance pay isn't a thing.
KhloeKendall@reddit
In all my jobs I've worked, nobody got a severance package. Unless you count your employer telling you, "Hey, we'll be a reference for you on your next job application." I guess that counts?
In most occupations, you don't get shit when being let go. In fact, some employers like to leave it vague so they don't have to pay unemployment. Giving you a severance package could be used as proof you are entitled to unemployment.
Extra_Routine_6603@reddit
Its not a guarantee it depends on the company if they want to offer anything. Was let go last year and ended up getting a pretty sizable severance they did a portion of yearly salary just had to finish out two weeks they gave me. But that was one of the bugoil and gas multinational companies. Honestly still bummed about losing that one
the-quibbler@reddit
Usually zero dollars. Rarely, 6-12 weeks of pay.
TrailGordo@reddit
I’ll give my experience as someone who has had severance pay. Twice, actually. The first one was from a job I worked at for around fifteen years. I don’t remember the formula they used, but something like two weeks of pay per year of service. So basically if you had worked there for a whole year, you got an extra paycheck on the way out. This was the same formula for everyone. Naturally, people who had worked there a long time and had large salaries got a larger severance package. For a small number of people that had worked there for decades and were close to retirement, this was a big enough payout to retire a bit earlier than planned.
Additionally, most employees got a retention bonus if they continued working until the last day of the company. This was important to the company that was acquiring us since too many employees jumping ship for new jobs could really damage the operations of the company they bought. For me, this was almost as much as the base severance.
Several years later I worked for a company going through a similar acquisition. I had only worked there for something like nine months, so I didn’t get much. But of course other employees did if they were more tenured.
But companies don’t have to do this. It depends a lot on the reason for layoffs. If it’s just a reduction in staff to cut costs during a downturn, then it’s less likely. But if it’s related to a merger/acquisition then it’s more common so that there’s not a major disruption to the business despite everyone losing their jobs.
And of course, if someone is fired, they typically won’t be given a severance.
Alarming-Chemistry27@reddit
The only severance I ever received was a 2 week. Basically another regular paycheck that they add on top. You sign a six saying you won't try to sure for wrongful termination and the money is in the bank by the end of the day.
karmapuhlease@reddit
Technically, they don't have to give you anything at all. My employer (big tech company) gives 14 weeks plus 1 week per year of service. That's generous (tech is still quite good to employees, despite everything that's happened over the past 3 years), but the structure is roughly standard. Many "normal" employers of white-collar professionals probably do something like 2-6 weeks plus 1 week per year of service.
All of this is basically altruistic, plus good marketing for the company (firing employees with zero severance would be an extremely bad look, and no one would ever voluntarily work there if they had other options).
eugenesbluegenes@reddit
I had to lay someone off recently after a year and we gave an extra three weeks of pay.
Oomlotte99@reddit
I was recently laid off and got the equivalent of two months pay.
Danibear285@reddit
Nothing
KristyKrispito@reddit
I’ve never met anyone who got a severance.
Walrus_Eggs@reddit
We offer 6 weeks, plus 1 week per year you've worked for us for layoffs. For people we want to fire, we offer 3 months, which I've always thought was insane.
scallopbunny@reddit
It's very dependent on the company. 1-2 weeks per year worked seems pretty standard for salary workers who get laid off and get severance - but that's far from a guarantee.
Generally, it seems like the better paid you are to start, the better your severance will be overall which doesn't really seem fair but this is America.
buried_lede@reddit
Great severance packages are usually a part of executive employment contracts. Decent ones might go to professionals. Adequate ones might be in a union contract. A couple weeks might be offered to others, by companies wanting to avoid a bad reputation , and others might get three days
Stinky_Butt_Haver@reddit
99% of the time it’s nothing
Boogerchair@reddit
There is no typical in the US that’s the point. Whether you ask about severance or PTO or healthcare, it’s all different. I think it’s strange everyone has the same thing on other countries, so it’s probably the same fascination seeing a country of variables.
To answer your question in my case, I’ve only been laid off once. I worked at the company 2.5 years and got 8 weeks severance and 1.5x pay for 4 weeks prior to being laid off. I was a little pissed off receiving the offer, but felt a lot better after securing a new position and realizing I was better off financially. Severance check wound up being ~40k usd after taxes.
Cinisajoy2@reddit
Depends on the company. Some don't do severance pay.
blbd@reddit
What does a severance package look like in MURICA? Trick question. It doesn't.
five_two@reddit
I've been laid off twice working for F500 companies. Both gave 30 days' notice. One company gave two weeks of pay for every year you were employed. The other company gave one week for every year. The current company I work typically gives you 90 days' notice + one week pay for every year.
No-Carry4971@reddit
I worked for a 60,000 employee company, and severance was 2 years for every year of service to the company capped at 36 weeks. So if you worked for the company 10 years, you got 20 weeks. They also always gave at least 60 days notice, so you were getting paid those days to knowing you needed to find another job. Often the notice was much longer. They also paid out any unused vacation days, which for a lot of people could add up to another 2-4 weeks or more. It was pretty generous.
Normal_Choice9322@reddit
Severance packages are not typical in the US. And no, you don't typically find more work quickly in this post covid era
Jerry_From_Queens@reddit
When I got laid off from a 2.5 year role at a small ad agency in New York City, I was offered two week’s worth of pay as severance.
When I got laid off from a 7.5 year role at a big tech firm many years later in New York City, I was offered four month’s worth of pay as a severance package.
Severance packages are not the norm, and they truly do vary across industries and geography.
Medill1919@reddit
A march out the door.
CowboysFTWs@reddit
I been laid off once. First job out of college. They give me a good amount of money. It was enough to move to other city and look for a new job.
NCC1701-Enterprise@reddit
There is no legal requirement for severance. Most jobs don't offer any, some larger white collar jobs may offer a small severance (a few weeks or months), but those are not super common either.
TheGreatSwatLake@reddit
Those things still exist?
desperatehousecat2@reddit
I got a year of severence.
EmptyFeedback1259@reddit
My last job was 2 weeks pay per year of service. Downside-it was HEAVILY taxed (23%) upside-it was a lump sum. My current jobs severance is not as generous. I think at 4 years it’s like 2 weeks pay.
ezekiel920@reddit
What's that?
Mundane-Charge-1900@reddit
Typically there is no severance at all. In some cases, they have to give 60 days notice or pay you during that time. Many tech or corporate jobs just pay out the 60 days, but elsewhere like in a factory job, you'll get the notice instead.
Temporary_Solid_5869@reddit
Depends on the company.
Some give a weeks pay per year of service, some give you until security escorts you off the premises.
wrigh516@reddit
2 out of 2 times they gave everyone 2 weeks for every year of employment. Both times they said that was typical severance.
Duck_Diddler@reddit
My partner just got laid off by a major finance company that moved her job to the Philippines.
She got 15k for 8 years of service and PTO pay out. Luckily we live in a good job area, so she bounced right back
ratchet_thunderstud0@reddit
Most Americans never see a severance. In normal (non-tech) industries 2 weeks pay per year of service is the norm for employees at management level if you are laid off. Fired for cause is usually your last paycheck, accrued vacation, and health insurance to the end of the month in which you are fired. Which really sucks if you get fired on the last day of the month.
Both_Painter_9186@reddit
I think you need to… you know… actually read the news.
Elon offered about 6 months severance to US Government Federal Employees if they voluntarily quit- AFTER getting rid of a bunch of their benefits and threatening massive cuts, many of which they delivered on.
It royally fist fucked the federal government.
bkdunbar@reddit
I was laid off before Christmas last year.
Severance worked out to be two months pay. So much for being severed, another value to ‘x years of service’. The second value was low due to being with the company for only a year.
Not great. Not bad. Found a new, better, role after a month and a half - hiring slows down over the holidays - so things worked out okay.
Fuzzy_Jaguar_1339@reddit
My wife worked for a Fortune 100 company and if laid off (which we're actually hoping!) their typical severance is 1 week salary per year of service.
I work in a law firm and my severance would be a Jerry McGuire style rush to the phones to try to scoop my clients before they leave with me.
Traditional_Trust418@reddit
It vastly depends on the company you work for. Typically you will have to sign a ton of stuff when you get hired and that will list what the severance pay (if anything) is if you get fired
Also, some states are at-will employment (meaning they can fire you without good reason), but not every state has this law
Empire-Carpet-Man@reddit
I would say "majority" or states are at-will compared to some.
Traditional_Trust418@reddit
I wasnt sure how many there are. I just know my state is not an at will state
Empire-Carpet-Man@reddit
Montana? That's the only non at-will state.
Traditional_Trust418@reddit
Yes, I live in Montana. I honestly just assumed other states also did the same thing
Orogogus@reddit
> some states are at-will employment
"Some states" is actually every state except Montana. But many states have some restrictions on how and when employers can fire employees even though they're at-will.
Traditional_Trust418@reddit
Really? I live in Montana and I didn't realize we were the only state that wasn't
JudgeWhoOverrules@reddit
Every state besides Montana uses at-will employment.
DvlMan3969@reddit
Depends on the industry, the position and the company.
Some give nothing.
Most give 1-2weeks or a formula (1 week per year of service with some cap).
Rarer occasion is the 2+ weeks and 1-3 months COBRA coverage (health insurance) and/or a few free sessions from an outside agency for building resumes.
Some executive positions come with a minimum 6 months, COBRA coverage and cashing out of stock.
At the state level you may also qualify for unemployment assistance. States like MA give a decent weekly amount based on your prior income. Enough to buy monthly groceries or pay rent/mortgage. Other states have a much lower rate of unemployment rememburetment.
Cthulwutang@reddit
worked for a big4 consultancy for three years, got nine weeks of pay. that is, they paid me my normal salary for that time.
a dozen plus years ago, i worked for a major manufacturer of cell phones; three full months of pay (they were european), and i got a job before that even ran out. then the following year they sent me a partial bonus that i guess i had earned!
BlueEyedSpiceJunkie@reddit
severance package?!
theDailyDillyDally@reddit
Salary jobs are different than hourly pay. For a corporate job, you can expect 2 weeks pay for every year worked. The policy is clearly spelled out in HR policy docs. Depending on the situation, a more generous severance could be negotiated or offered.
Lunar_Gato@reddit
The place I work at is for sale and I'm getting 2 year severance when it eventually does. No buyers currently lol
Trillion_G@reddit
The typical ones I’ve seen in all my corporate jobs is 2 weeks of pay for every year you’ve worked there. Perhaps they’ll keep paying their part of your healthcare premiums for 6 months or a year.
But I’ve also lost a job with zero severance, but at least I got a 4 weeks heads up.
Based on the global companies I’ve worked for, I don’t see Americans
Ill-Butterscotch1337@reddit
I got laid off last year in late November, the week before thanksgiving. I got in at 8 and was told at around 830. I was given a box and told I could take as much of my personal belongings as I could fit in the box or in my hands. The rest they would mail to me as I would not be allowed back in after I left. Once my box was packed I was escorted out by the office manager.
So I guess I got a box as severance.
gdubh@reddit
There is no such thing as a typical severance package. They are the exception.
SLC2355@reddit
I've had probably about a dozen jobs since I started working. I only had one job (literally my freaking dream company) that had a mass lay off and my whole team was let go. We had a severence package that went off our years of service. I had only been there for 3 years and they gave me 5 weeks of pay. Some people had been there for 30 years, but everyone got capped at 17 weeks. Mine came out to just over $5,000. I would have much rather kept the job, but whatever, investors are more important to corporations.
Various_Succotash_79@reddit
Layoffs more often have severance pay. I once got a few week's pay when the call center I worked in closed down. But if they're firing you because they don't like you. . .maybe they'll let you clean your desk/locker out. Or maybe not. And they don't need to give you a reason for it either.
GooseinaGaggle@reddit
You may or may not have the ability to apply for unemployment benefits
nutmeg213@reddit
There is no such thing as typical. Everything varies
_IndyCar@reddit
I got a big fuck you and a sarcastic good luck somewhere else
AardvarkIll6079@reddit
Most companies don’t give any.
largos7289@reddit
2yrs?!?! i would have taken that deal. Typical is like 2 weeks, plus any vacation that you didn't use. Sometimes it's just the vacation time you didn't use.
itsmyparty45@reddit
I got 1 average week's pay for every year I had worked for the company.
Ok-Alternative-7962@reddit
same plus a month of health insurance for every year. I had been there for decades so it was a good way to retire
RuinAdventurous1931@reddit
I got one week of pay per year of service. So two weeks.
fetus-wearing-a-suit@reddit
That's only for high-level positions. Most severance packages are $0. However, they must pay accumulated vacation time.
minidog8@reddit
Not true about the vacation time. That’s only in some states.
fetus-wearing-a-suit@reddit
I appreciate the correction
ryguymcsly@reddit
And most jobs in those states offer “unlimited time off with manager approval” explicitly so they don’t have to pay shit.
PaepsiNW@reddit
The whole paid out PTO thing is not mandatory. It has to be written into the handbook or contract you sign for it to apply. Large corporations and government jobs will pay out PTO, but most small companies definitely do not.
Seamus_MacDuff@reddit
It varies. Working in tech, got laid off after 6 years working for a major company, got 7 months severance and 12 months paid healthcare for myself and family. Not many are that fortunate though.
MartialBob@reddit
I had a manufacturing job during the recession. After our factory was passed around a few owners we were sold to a privately held company that ended up laying off a lot of people. The severance package offered was one week's pay per year of service.
Diligent_Mulberry47@reddit
I’ve been laid off about 3 times in my career and I only got severance from one. It was based on my tenure at the company (5 years), and my current pay rate.
Kept me afloat for about 3 months before I got another job, and I do have some leftover still.
JessicaGriffin@reddit
I’ve never gotten severance, and the place I currently work does not offer it.
Ryan1869@reddit
I would say at best you might get 1-2 weeks of pay, and most of the time you get nothing.
Free-Sherbet2206@reddit
My work has security escort you out in the middle of the day. That’s it
KingWolfsburg@reddit
Last RIF at my company was a week for every year you worked there
Polardragon44@reddit
Usually it's unemployment benefits from the county or state that most people receive
Thick_Maximum7808@reddit
I’ve only been laid off once and my severance was one month of pay for every year of work. Some people who had worked there for a long time got huge severances but most of us had been there 2-5 years so it wasn’t that big.
Severances are the exception not the rule.
Available_Reveal8068@reddit
My company generally provides 1 month salary for every year of service, and two weeks salary for anyone less than a year.
Emotional-Loss-9852@reddit
It varies a lot, I think my company is like 4 weeks plus a week for ever 2 years of service or something like that
chile-pica@reddit
“Good luck out there, thanks for the 20 years of service”
Ogrimarcus@reddit
I've never gotten a severance package, but I do know people who have and the most I've ever heard is 3 months salary.
I think often times stuff like that 2 years of salary is more a publicity stunt then an actual practice, like a company will offer "up to" two heads based on time with the company or seniority or whatever else.
HR_King@reddit
Severance package? Surely you jest?
JuryOk2662@reddit
I don't know that anyone I know has ever worked anywhere that offers one. I sure haven't and I'm 40, though most of my jobs have been of the blue collar and service/retail variety.
Ill-Lou-Malnati@reddit
I’ve been laid off twice, both by large multinational companies and I got two weeks pay for every year worked. The payments came in the form of regular paychecks for the duration. And my health insurance was extended for the period of those payouts. I was also allowed to collect unemployment during that period so I actually was making more for a few months. The first layoff was after five years, so ten weeks of pay, and the second was after eleven years, so 22 weeks of pay.
Dio_Yuji@reddit
Been fired four times. Never got shit.
WestBrink@reddit
My company (in the oil industry) has done a lot of layoffs lately and their package has been 3 weeks pay per year of service, minimum 6 weeks, max 60. Definitely better than a sharp poke in the eye. I'd walk away with like 160k if I got laid off today...
Umanday@reddit
“Severance?” Stop using Latin terms. ..speak English.
Jsaun906@reddit
The typical severance package is whatever your state unemployment program offers. Generally only high end jobs offer severance. And they're not mandatory
yanknga@reddit
Usually it’s a box to put your stuff in when you leave. Severance packages aren’t commonly found for workers. Senior executives and a few industries have severance packages but the majority of Americans are fired and paid their final paycheck.
I_Am_Mandark_Hahaha@reddit
Severance packages are not the norm in the majority of jobs.
The "social safety net" the government provides is by way of unemployment insurance. Employers pay into it, and workers make a claim when they get fired. The exception is if the employee is fired for cause.
Each state has its own rules on unemployment insurance. Some states require proof that the worker is actively seeking employment.
Otherwisefantastic@reddit
I would venture that the majority of American workers do not get any severance at all when they are laid off.
SnowblindAlbino@reddit
I'm pushing 60 and the only people I know who ever got any sort of severance were executives at large companies. Regular folks? Never. More likely to get escorted out the door by security during the lunch hour.
NVJAC@reddit
I didn't get any severance at all the last time I was let go from a job.
visitor987@reddit
A few business give severance packages because they are nice. However, Severance packages are often given when the person laid off is over 40 and the person taking over their duties is younger You get the packages if agree not to sue for age discrimination. A lawsuit for age discrimination often takes 5 to 7 years to end.
Sapphfire0@reddit
When my mom got laid off she got 2 months pay
rnoyfb@reddit
Severance pay is not required by law. Some companies provide it anyway, especially for office workers. Amazon laid off a lot of people recently and most of them got 60 days pay (during which time they were eligible to apply for other positions in the company) and health insurance for a much longer period.
Under the Worker Adjustment and Retraining (WARN) Act (in effect since Feb 1989), if a company employs 100 or more people, they must notify them of layoffs 60 days in advance. (That’s why Amazon’s severance was 60 days pay: they didn’t want people they were laying off to continue working in those roles knowing they were on their way out. People who know they’re losing their job anyway can sometimes be mischievous.)
Two years of pay is very unusual. Being laid off can work out well financially, though. Getting laid off at least gives you time to look for a better job. Unemployment typically replaces about 60% of wages up to a hard cap so you suddenly have time and motivation to find a new job
Evapoman97@reddit
Most jobs in the US don't have severance pay
Firm_Baseball_37@reddit
Usually nothing.
The richer you are to start with and the higher-up in the company you are, the bigger your golden parachute. So a CEO might get a very generous, multi-million-dollar severance package. The workers he lays off get nothing beyond a notice that they don't have a job anymore.
RandyArgonianButler@reddit
What the fuck is the severance package?
Whatisthisnonsense22@reddit
My wife got a week of severance for each year of employment. She couldn't apply for unemployment until that severance ended.
Wak3upHicks@reddit
I've been working 20 odd years now, never once had one of those
Puzzleheaded-Bee4698@reddit
Most Americans get no severance pay whatsoever.
I worked for a company for 22 years as a chemist. I got 6 weeks severance. Corporate executives get much more.
sparkledotcom@reddit
Only c-suite executives or union workers get severance packages. If it’s a lay off situation they may say the separation is only temporary so no severance is due. You kind of need a lawyer or union to represent you to get anything at all.
mtcwby@reddit
We've always done two weeks plus a week per year of service up to 26 weeks. During 2008 we had to do it because we were floating at break even at best but the owner kicked in an extra month because it was rough out there
dweaver987@reddit
I was laid off a couple years ago from a large company when my department was eliminated. We had to have completed at least 7 years as an employee. (Contractor work wasn’t included in the calculation.) We were given two weeks of severance for every full year of service. Our severance was paid out over the subsequent regularly scheduled payroll.
Note: this is considered on the generous side of severances.
Turd_Fergusons_@reddit
In my industry it's typically 6 months to a year of salary and benefits. If you are a professional worker (white collar).
Living_Fig_6386@reddit
There's no law that requires a severance package, and, as a result, you typically don't receive anything on your way out than possibly a cardboard box for your stuff and an escort out by security. The exception might be company officers and executives that have a contract in place that specifies that they will receive some sort of package.
For companies that do offer severance packages, it's typically for lay-offs of groups of employees rather than individual dismissals. Companies offer severance pay to avoid negative press, a negative reputation in the industry where they operate or among clients, or to encourage the employee to sign an agreement not to publicly disparage the company, bring legal action against the company, or similar.
In my industry, severance is the nor, because the industry is a fairly interconnected community and people talk. Moreover, someone you lay off today you might want to recruit back later (I had one employer do that to me). The typical severance in our industry is 2-4 weeks pay plus 1-2 weeks per year worked. In the rare event that a company doesn't do that, the company's reputation will be ruined (but typically they are going bankrupt in such a situation, in which case it doesn't matter).
Forward_Tank8310@reddit
There really are a lot of variations nationwide, but severance typically ranges from a payment of zero to a decent amount. Some companies prove to just evil and minimize everything they can in severance.
White collar roles often have better terms related to severance but it absolutely depends on the company, the circumstances of the layoff, your position, & lots of other factors. The more senior roles often get treated better in severance but you’re still getting unceremoniously turfed out of the business. Everyone’s experience will differ widely.
As a VP at a global IT manufacturer based in California, which launched a major restructuring of the business in the early 2000’s, after 10 years with the biz. My severance was exceptionally good thanks to my contract (& the company requiring my silence as part of the deal). I was given 6 months pay & paid healthcare plus office and admin support for job hunting (neither of which I used as I was lucky enough to find a similar job quickly). Lower level whit collar positions at that time received similar health care benefits but only 2 week’s pay for every year with the company.
I switched to roles at risky new hi tech startups after that, & I’ve been terminated at two of the four I joined by betting on the wrong young companies. One was decent following the successful acquisition of the company, where my stock options were accelerated early to full value and given 2 week’s pay for every year employed by them, but no healthcare coverage (the stock was what was important). All employees terminated by the new owners received about the same package. The other startup company ran out of funding during COVID, failed, and every employee regardless of role received a total of 2 weeks pay and nothing else as part of the bankruptcy terms. I retired during the pandemic, so only my wife can fire me now.
archmagi1@reddit
Most non office jobs have none at all. Around here, office jobs have 2 weeks to a month plus a portion of your PTO bank, pretty standard (my company's policy is 2wks + up to 2 wks of your PTO). Good companies will hit you with extra weeks per year of employment. Buddy got let go from Verizon in Dec (mandatory layoffs, VZ hit 5B in bottom line profit that quarter), his 13 years netted him 13 months of severance and a six mo noncompete.
r2k398@reddit
Most companies are required to carry unemployment insurance. If you get laid off, you get a percentage of your paycheck (up to a certain amount) for a couple of months while you look for another job.
Own_Thought902@reddit
Severance packages are unheard of except for the very highly paid. Sometimes. The rest of us have to rely on government unemployment benefits.
Ambitious-Ad2217@reddit
Rarely are people getting these kinds of packages. The only real protection we get during layoffs is companies of a certain size have to give 60 days notice you can also just pay employees for 60s and close immediately. I worked at a company for 5 years that was closing. I was offered $1,000 for each year of service and another $2,000 for my role in the company. At the time I was making about $55,000 it’s wasn’t worth waiting around for this money because about 100 people were going to be unemployed with similar skills to me at the same time. Not to mention all the other people that worked there with skills in the same industry.
No-Lunch4249@reddit
I've gotten a severance package twice when I lost my job due to company relocations/restructures
One was two weeks pay plus a week per year worked.
The other was a months pay for everyone iirc
gtrocks555@reddit
My company does a month of severance for every year at the company. Not the best by any means but I’m 5 years in so I’ll take it if I’m caught in a layoff.
Now if I’m fired then I get nothing.
Quenzayne@reddit
I got laid off from a game studio after 8 years and got 8 months salary and benefits, plus all my sick time and vacation time paid out in a lump sum.
mckenzie_keith@reddit
It's going to vary. In tech, 2 weeks of full pay for every year of service is somewhat standard. If you get laid off after 5 years, you get 10 weeks of full pay. If you find a new job in less than 10 weeks, it can work out in your favor. You also have to consider health care costs though. You may have increased healthcare costs after separation, unless you can get on a spouses plan or something like that.
When small startups go out of business, there may be (probably will not be) any severance. But when you read about big layoffs, there is usually some severance. The companies really do not want to be sued by former employees. The severance is the thing that they use as bait to get the employees to sign an agreement to never sue.
Also, they do sometimes give notice. I mean, technically. "Your last day is in two weeks. Your email and slack are already deactivated and your badge won't work any more and you are not to come to the office unless invited by HR to sign your severance agreement. Police will be notified."
We are like a family.
Rightintheend@reddit
There is no such thing as a typical severance package.
HuskerPhil11@reddit
Ha!
gard3nwitch@reddit
Most people get nothing. $0.
0NLYDANSS@reddit
My eldest grandfather got a 100% pension from Ford, Ill get a gift card from my company, maybe a pizza lunch.
ComplexPatient4872@reddit
Well, my husband was laid off unexpectedly from a mid-level position and received nothing, and my dad worked for The Mouse in a high up position and again, nothing.
TheDeaconAscended@reddit
It can be very industry specific. I have only been laid off once since entering the workforce in 2000 and that was during COVID. We got six months notice and six months severance. But I have heard of up to two years severance and as few as three months for 2 companies I worked for during that 20 year stretch.
Hamblin113@reddit
It’s called unemployment. To get a severance may be available to some in management, when the company decides it doesn’t need the employee or program the employee was managing. Most get nothing, can sign up for unemployment.
Some places may give incentives to leave. If employed by the government and a reduction in force is initiated, have a choice to move to an open similar job or be able to bump a lower seniority person in a job that is qualified for.
AcanthaceaeOk3738@reddit
Nothing is required. Often they give nothing or close to it.
And when employers do give severance, you often have to sign away your rights to sue them for anything or to speak about them to anyone.
Musk didn’t give two years severance to federal employees. They were offered a few months if they resigned. Federal employees who are laid off can also get a few months of severance; there’s a law on that but I don’t know what it is.
hewhoisneverobeyed@reddit
Never been offered one. Was once given a month’s notice.
Severance packages are mostly plot devices in movies and sitcoms, not reality.
CLG-BluntBSE@reddit
This is unheard of in all but the most ivory-tower professions.
BigBearOnCampus@reddit
Depends on the job and your length of employment. For example: my mom works for a bank and she’s been there over 40 years. If she’s let go, they’ll give her 50 weeks pay
CalebCaster2@reddit
ive never heard of it in real life, only in movies
dj_1973@reddit
My job fired me, and offered 10 weeks severance. I got a lawyer and asked for 13 weeks, 1 week per year I worked there, including my health benefits.
GothWitchOfBrooklyn@reddit
severance? LOL
NPHighview@reddit
Not in executive circles by any means, but between us, we got 3 years' salary as part of our severance package from a large multi-national company. This helped us get back into an expensive real estate market we'd left a decade earlier. The new company paid relocation, temporary housing, bought down our mortgage interest, gave us a 3-year interest-free loan.
AutomaticRepeat2922@reddit
Severance consists of two parts:
Some companies might give you access to trainings, legal, immigration, staffing agencies etc for a few months to help you find a new job.
Frito_Goodgulf@reddit
There are no laws requiring companies to offer any severance. None.
OMFG. You are so seriously misinformed and delusional. Any "large" payouts only go to CEOs who are forced to quit after their companies lose billions. Any other non-trivial payouts are very significant exceptions and not the common cases.
Like 99% of what Elon says in public it was absolutely bullshite.
If you take seriously anything Elon Musk says, you very much need to quit doing that.
Only for CEOs who get fired after their companies lose billions of dollars, but still get hired by another company.
If you're a regular employee, you had better hope and pray very very hard you get another job quickly. Otherwise, you'll absolutely be financially destroyed.
TravisSpomer@reddit
The amount of severance you get is whatever the company calculates is the minimum they can give you and still avoid permanently ruining their reputation (with the public, current employees, and future employees). Usually that is $0.
NoForm5443@reddit
There's nothing required by law, so there's a huge difference between companies and roles.
There's kind of a big divide between 'good' companies or roles and 'bad' ones. Bad roles, you get no severance. Good ones, usually professional, full-time etc, probably union too ;), you can get a good chunk.
Professional roles at tech companies, what I've seen, 2 weeks + 2 weeks per year, up to 20 weeks, plus healthcare that time, and stock vesting during that period, if you're RIFd
mads_61@reddit
We just went through mass layoffs at my job (thankfully I was speed, for now anyway). The severance packages for the people I knew was about 3 weeks’ pay.
jek39@reddit
there's no such thing as typical in america
AffectionateJury3723@reddit
Severance varies widely by company, length of service, reason for termination. I was in an industry that had a lot of mergers. I was laid off and rehired by the surviving companies 3 times. Each severance package was different and varied (1yr, 6 months, 3 months.)
Individual_Check_442@reddit
It wasn’t two years with the Doge cuts was about 6-8 months. It wasn’t actually severance it was incentivizing people to resign. They offered pay until September 30th to resign in February then again in April I think
Stan_Deviant@reddit
The drp (fork) was offered several times but different times across agencies. But it is in court again and they might have to pay back most of that.
A normal severance for federal workers is a calculation based on years of service and age. You can find the calculators on the opm website.
Premium333@reddit
As others have said, severance packages are not rare, but they aren't exactly common either and it's done several different ways.
I've seen/herd:
During the 2008 slowdown, I knew a guy who was offered 18 months pay to voluntarily leave his company. They needed like 50 people to do that. They got them all by lunch time and he was one.
He traveled the world, then signed up to get a second degree in design and has been extremely happy ever since.
Eric848448@reddit
I’ve been laid off twice
First time I got four weeks plus another two per year I was there. That worked out to around 9 weeks total. It was 2011 and I had an offer in about two weeks.
Second time it was eight weeks plus four per year. And an extra month of insurance. Luckily I saw it coming and had been job hunting. I had an offer the week before the layoff happened. That was 2015.
UpbeatPhilosophySJ@reddit
I got like two weeks, but I've also gotten zero.
Malicious_blu3@reddit
I was laid off last October. I had WARN + severance. Got a part-time job just as the WARN ended and my severance began, then a full-time contract that will put off unemployment until August, giving me more time to save even more.
Tav17-17@reddit
There is basically no standard. If you get fired for a reason then it’s typically nothing. If your company is doing mass layoffs then it can be nothing or it can be 1-2 weeks of severance per year of service and that can be capped at. 3,6,9,12 months or whatever the company wants. They can also just give a flat amount of weeks to everyone regardless of how many years you have worked there but I thinks that’s less common. They can also give severance at a percentage of your salary but that’s less common these days.
Also a lot of the time if they are offering decent severance it’s contingent on you staying on as an employee and training your replacement (typically in India) for 2-8 weeks.
People in Europe usually have much better protections, get way more notice and similar severance or “garden leave”.
TheJokersChild@reddit
Not quite. A law called the WARN Act requires a company of 100 or more full-time employees to give 60 days' notice of mass terminations, so same-day layoffs are not legal in most ccompanies.
Amount of severance most often depends on time served: typically it's one week of pay for every year you worked. 3 years = 3 weeks of severance, but 20 years = 20 weeks. In some cases, it's tiered: 0-5 years = 6 weeks, 6-10 = 10 weeks, and so on up to 20 or 25 weeks.
Sometimes, as when the CEO gets ousted, severance comes in the form of a large package known as a "golden parachute" that includes cash, stock options and other bonuses. Nice little going-away present.
Naive-Direction1351@reddit
Most of the time its nothing... you get unemployment. If you get layed off froma buy outnor something it can be like 4 weeks pay than 1 week for every year there
LHCThor@reddit
Severance packages are rare. Except in high end tech jobs. My brother in law just got a 1 year severance package. He was making 400k a year. My son in law was recently laid off and only got 2 weeks. Most people get nothing.
BlazinAzn38@reddit
Severance would typically be $0 as that’s what’s required by law. The WARN act for large scale layoffs requires 60 days notice or 60 days pay in lieu of notice
Icy-Candidate-6467@reddit
I got laid off from a big company back in 2015 once we lost an apple account, I got 6 months of pay which was awesome at 18 years old, It was a good job .
Maybeitsmeraving@reddit
Severance is something you only really see in high skill or niche industries with moderately frequent layoffs or for C suite people. If there are a relative few people who can do a job and a bit of fluctuation in demand for labor, companies will offer severance as a way of maintaining goodwill in their industries. It's very much the exception. I only ever had one job in the US that gave severance, and the home office was in Germany.
Airhead72@reddit
My company I worked for for 10 years is doing it later this year. They're offering 1 week of pay for every year of service. So I'd get 2 and a half months.
minidog8@reddit
It really depends. A lot of places you get nothing.
karentn1969@reddit
My last severance package was 24 weeks. I had been there about 6 years. I also knew a few months before hand and got a 25% of my salary bonus for staying until the layoff date. And I had almost 5 weeks of PTO they paid me for. 2009 was a good year for me
PaepsiNW@reddit
Most companies don’t offer severance packages. If a company does offer a severance package, it is to certain positions, not everyone. It’s rare to have a company offer severance to everyone.
Silly-Resist8306@reddit
My company would give 2 weeks pay for every year work, although everyone got 6 weeks as a minimum.
BreakfastBeerz@reddit
I've been through 2 layoffs when severance packages were offered. The first was 2 weeks pay + 2 weeks per year of employment. So if you were with the company for 10 years, you would have 22 weeks pay. Job placement services were also offered with reimbursement for any job seeking expenses for 6 months + you could keep your existing health insurance.
The second one was 1 year's salary + 2 weeks pay per year of employment. It also included job placement services and reimbursements. You were on your own for insurance.
Top-Friendship4888@reddit
I was offered 2 weeks pay as severance when my position was eliminated. My employer then offered me a demotion instead, which I took. I left on my own a couple months later, once I was able to line something up.
Frosthoof@reddit
This happened to my workplace a couple months ago. They offered a week of pay for each year you've been with the company. the health insurance went for another month after they closed the office. I wouldn't call that a huge payout other than for the folks who had been there 8+ years.
pawsplay36@reddit
Typically, your share of the pizza. For companies that actually care about their employees and reputations, two weeks pay is pretty typical.
Ok-Energy-9785@reddit
It looks like nothing
LiquidDreamtime@reddit
Most don’t get any severance.
In 2008 I was laid off from Stanley Tools and got 4 weeks severance.
TCFNationalBank@reddit
My company does 2 weeks pay per year of service for corporate roles (e.g: 10 years = 20 weeks), and call center or nursing jobs they don't do anything
CtForrestEye@reddit
We do get unemployment which is about half pay if you document at least 3 jab applications per week. This is good for six months.
Redbubble89@reddit
I have gotten either nothing or my holiday/vacation pay added to the end of the last paycheck. Unless government employee or really high up in a company, it's shit.
pinback77@reddit
Each company is different. When I was laid off from one about 20 years ago (I worked there seven years), they gave me two weeks to continue working, one month after that not working but all pay and benefits if I was, and then six months salary as severance. It was the best deal ever, because on the last day of the one month, I got a new job making 5% more. So it was like a free half-year salary.
classiest_trashiest@reddit
I got 3 months severance. Plus they gave me six weeks to transition everything (paid, of course) and that wasn’t part of the severance. But if I decided to leave before the 6 weeks, I’d forfeit the severance package. Then when I received my severance, they taxed it at the highest % - thankfully I got almost all of it back when I filed my tax return.
SabrinaFaire@reddit
It's going to vary. I think I've seen two weeks for every year you have been with the company most often. Plus they may pay for your health insurance for awhile. But that's for a layoff, like we have budget problems or reorganized or got bought by another company and have to let you go. If you get fired, you get nothing, but you can file for unemployment with the state.
I got laid off last August and they gave me six weeks of severance and paid for three months of insurance. I was with the company two years, so it was more than I expected.
Severance isn't guaranteed and it isn't required by law. Most Americans don't have employment contracts that might guarantee a severance.
Ok_Dog_4059@reddit
Basically "bye" as they escort you out of the building.
sneezhousing@reddit
Most often nothing just fired
Jaqen-Atavuli@reddit
I have been laid off twice in the past 4 years because of company closures. Yeah, I am really lucky. I got a months severance plus paid my remaining vacation time at both companies. But yeah, it just depends on the business.
needsmorequeso@reddit
I’ve been laid off twice. One job paid out my vacation time. One job didn’t offer paid time off as a benefit and paid nothing, but I had a few weeks notice to start looking.
CollenOHallahan@reddit
Very dependent on the job. Low level jobs get nothing. High level white collar jobs may get 6 months pay.
My old man got laid off from his factory job he had for 39 years. I think he got a year or so of pay.
cd3393@reddit
Those are typically for C level employees or the like. Most people will never receive one
Positive-Avocado-881@reddit
I work in HR and can confirm there’s no consistency. Even different roles in the same company will get different packages
Odd-End-1405@reddit
From my experience, it is generally one week per year of service, with a minimum of two week minimum. This is for smaller companies.
If an employee is critical in the short term, the RIF may include a retention package to close up.
While Severance is not mandated, some companies will have 60 days “severance” minimums as a way to get around the WARN Act. Either way you get your sixty days pay after notification.
Youcants1tw1thus@reddit
Usually severance is for upper level salaried employees. I’ve never heard of an hourly (or non-exempt is the official classification) employees getting a severance package, I’m sure there’s examples of it though.
ColumbiaWahoo@reddit
Usually nothing
clutzycook@reddit
You guys are getting severance packages?
Dr_Watson349@reddit
When I was laid off, I was given six weeks pay. I had been at the company for a little over a year.
My friend's company had layoffs recently and it was two weeks for every year worked up to a max of 1 year of pay.
And no Elon never paid that 2 years FYI.
o93mink@reddit
I just got laid off. Got 1 month of severance pay and insurance for every year worked, plus payout of this year’s bonus and LTI and prorated unvested LTI for the next 2 years. Plus my accrued annual leave. All in about $300,000 gross before taxes (excluding insurance).
notthegoatseguy@reddit
Employment is at-will, which means either party can end it at any time. Any severance is up to the employer. There's really no standard.
Mass layoffs of large companies must be announced in advance under the WARN Act.
TwinkieDad@reddit
FYi, you can quit the same day too. I’ve done that, but never been fired or laid off.
dobbydisneyfan@reddit
$0.00 and an effectively trespass from the property if you don’t give proper notice to leave.
Sadimal@reddit
It depends on the company, how long you worked for the company and your role.
Typical severance package could be a few weeks/months of pay and any accrued PTO. How much depends on your role in the company.
Of course there are companies that give you nothing.
If you're near retirement age, a company can force you to retire. Then you just get your pension. This happened to my uncle after he worked for his company for 30 years.
MotherOf4Jedi1Sith@reddit
I got a text message that I was furloughed from my job a couple years ago. But that's the chance you take when you're a contractor and not an employee.
Accomplished-Fun215@reddit
I got 6 months recently from a company that engages in a ton of shady management practices and pays off everybody they get rid of so we don't sue.
orcas-@reddit
There is no law that guarantees severance. Some people have jobs where it is part of their collective bargaining contract or individual contract. They would be a minority. https://www.usa.gov/termination-for-employers
CockroachNo2540@reddit
I would say more often than not, employees get nothing.
river-running@reddit
I've been fired once and got a month's pay. In exchange for accepting the severance, the company also agreed to officially record my departure as voluntary.
iLuvArizona@reddit
Severance packages are not required by law. The WARN act is a thing for layoffs above a certain number of people though. If you don't get a severance or your severance runs out, you can file for unemployment as long as you were not fired "for cause." But the favorability of your claim, how much you get, and how long you can get unemployment varies wildly by state. At least one state doesn't require that employers pay into unemployment insurance at all (Texas)
GotchUrarse@reddit
The last place I worked for, they laid off the entire US division. I got 5 months, but was able to live about double that. It all really depends.
Chateaudelait@reddit
Yes it can - the company doing the layoffs generally doesn't want you to sue them so they may fire you and have you leave the same day but give you 6 weeks severance. It is pretty vital to get a job right away because the health insurance is tied to your employment so you have some pretty steep insurance costs. It can happen that you find another position relatively quickly.
MyUnassignedUsername@reddit
For a majority of Americans, i think severance packages are pretty non existent these days. There’s actually no federal law requiring severance at all.
imissaolchatrooms@reddit
Zero where I work.
omnipresent_sailfish@reddit
Depends on the company, your position, and the amount of time you’ve been with the company
ryguymcsly@reddit
In most cases there is no local law requiring severance of any kind. With one exception every time I’ve been laid off the severance was $0.00
mzanon100@reddit
One week's pay per year worked. It is not altruistic; it's offered in exchange for terms (e.g., non-disparagement) that the employer chooses. If the employee dislikes the terms, the employee must reject the severance.
gman2391@reddit
One time I got 6 weeks of pay. Another time I got nothing. It could work out great, or you could be completely fucked