How Much Severance Pay Should I Get in Los Angeles?

There's no simple formula because California doesn't require employers to pay any severance at all. Severance is entirely voluntary. So the question isn't what you're entitled to by law. It's what you can get based on your situation, your leverage, and how well you negotiate.

That said, there are benchmarks. Let's go through what's typical and what can push the number higher.

The General Benchmark

The widely cited standard is one to two weeks of base pay per year of service. So an employee who worked at a company for six years might expect 6 to 12 weeks of severance pay. Executives and senior employees often see four weeks per year or more.

But this is just a starting point. Plenty of employees get more, and some get less. The benchmark tells you what's common, not what's right for your situation.

What Factors Push Severance Higher

Your potential legal claims. This is the single biggest factor. If you have viable claims for discrimination, wrongful termination, retaliation, or wage violations, those claims are worth money. The severance agreement asks you to give them up. The stronger your claims, the more you should get for releasing them. Under California's Fair Employment and Housing Act, discrimination damages can include lost wages, emotional distress, and punitive damages. A strong claim can be worth many times more than a standard severance offer.

Your position and salary. Higher-level employees generally receive larger severance packages, both in absolute terms and relative to their salary. An executive earning $250,000 a year has different expectations than a mid-level employee earning $75,000.

Length of service. Employees who gave a decade or more to a company have stronger negotiating positions. Long tenure creates an expectation of loyalty that cuts both ways.

Industry norms. Tech companies in LA, particularly startups and mid-size firms, often offer more generous packages as a standard practice. Entertainment and media companies often have industry-specific norms for different types of positions.

Whether others were laid off too. In a mass layoff, your employer has additional legal obligations under the WARN Act (both federal and California's stricter state version). If they didn't comply with WARN Act notice requirements, they may owe you up to 60 days of pay and benefits on top of any severance.

Embarrassment risk. If your termination story would look bad for the company publicly, they'll often pay more for a confidentiality agreement.

What Severance Isn't

It's important to understand what's not included in severance so you can account for the full picture.

Final wages are not severance. Under California Labor Code Sections 201-203, your employer must pay all earned wages and accrued vacation on your last day. This is owed whether or not you sign the agreement.

COBRA is not severance. Your right to continue health insurance at your own expense exists regardless of the severance agreement. What the employer might add as part of severance is paying some or all of the COBRA premium for a period.

Unemployment is not severance. You're likely eligible for unemployment benefits through the EDD whether or not you sign. Severance and unemployment are separate.

How to Evaluate Your Offer

Start by calculating the total value, not just the cash. Add up:

The severance payment itself. The value of any extended health insurance (what COBRA would cost you out of pocket for that period). Any other benefits like outplacement services, equity acceleration, or continued use of a company car. Then compare that total against what you'd be giving up: your legal claims, your ability to speak publicly about your employment, and any competitive restrictions.

If you were let go for a suspicious reason and you have potential claims worth six figures, a few weeks of severance pay is not a fair exchange for signing a general release of all claims.

Real-World Ranges

These are rough ranges based on common scenarios in the Los Angeles and Southern California market. Every situation is different.

Entry-level, no claims, short tenure: 1-4 weeks of pay.

Mid-level, moderate tenure, no significant claims: 4-12 weeks of pay.

Senior level or long tenure: 3-12 months of pay, sometimes more depending on the circumstances.

Any level with strong legal claims: Significantly higher than the standard range. The severance becomes less about tenure and more about the value of the claims being released. Settlements in cases involving discrimination or retaliation regularly reach into the high five or six figures.

Get a Real Number

The only way to know what your severance should be is to have someone familiar with the Los Angeles market evaluate your specific situation. The benchmarks above are starting points, but your potential claims, your industry, your role, and the circumstances of your termination all matter.

Our employment attorneys offer free severance agreement evaluations for employees in Los Angeles and throughout Southern California. We can tell you whether your offer is in the right range and, if it's not, what a realistic counter looks like.