Severance Pay by State: All 50 States Compared
Compare severance pay laws, tax rates, and WARN Act requirements across every US state.
Looking for a specific employer instead? Browse severance by company (Amazon, Google, Meta, JPMorgan, and more).
Which states require severance pay?
No US state requires severance for an ordinary, individual termination; the US Department of Labor describes severance as a matter of agreement between an employer and an employee. Two states require it for certain large layoffs and closings. Under the NJ WARN Act, employers with 100 or more employees owe at least 1 week of severance per year of service for a qualifying mass layoff (generally 50 or more employees at a covered establishment). Maine requires severance for plant closings affecting 100 or more workers. Most other states follow the federal WARN Act (60 days' notice, employers with 100+ full-time employees) without mandating severance. Whether any of these apply to a given layoff is a question for an employment attorney in that state.
State guides: New Jersey and Maine. Full conditions, Puerto Rico's separate rule and the statute text: the state-by-state answer.
Sources: NJ WARN Act, N.J.S.A. 34:21-1 et seq. (as amended, effective 10 April 2023); Maine severance pay statute, 26 M.R.S. §625-B; federal WARN Act, 29 U.S.C. §2101 et seq.
State-by-State Severance Pay Comparison
Click any state for a detailed guide with a free severance calculator and industry breakdowns.
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Key Differences in State Severance Laws
No Income Tax States
Workers in these states keep more of their severance. Only 22% federal withholding applies:
Highest Tax States
Workers in high-tax states pay significantly more on their severance:
Enhanced WARN Act States
These states require more notice than the federal 60 days:
Frequently Asked Questions
How does state tax affect my severance pay?▼
Federal supplemental withholding of 22% applies in every state; state withholding depends on the state's method. Some publish a flat supplemental rate for a separately paid severance (California 6.6%, New York 11.7%), some withhold at a flat income-tax rate (Pennsylvania 3.07%, Illinois 4.95%), some use withholding tables (New Jersey), and nine states, including Texas, Florida, and Washington, have no income tax on wages. The table below shows the 2026 estimate for each state with its source.
What is the WARN Act and how does it vary by state?▼
The federal WARN Act requires 60 days notice for mass layoffs of 50+ employees at companies with 100+ workers. Some states have enhanced WARN Acts: New York requires 90 days, California requires 60 days but with a lower threshold, and Illinois has a lower employee threshold of 75 workers.
Which states have the best severance pay protections?▼
New Jersey has the strongest protections with mandatory severance for mass layoffs. California bans non-compete clauses, giving workers more leverage. New York has an extended 90-day WARN Act. States with no income tax (TX, FL, WA, NV) let you keep more of your package.
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Legal Help
For advice on your specific situation, consider consulting a licensed employment attorney in your state.