How Much Severance Should I Ask For in California?

Search "how much severance should I ask for" and you'll find rules of thumb: two weeks per year, a month per year, ask for double. None of them come from the law, and none of them know anything about your situation. A rule of thumb gives you a number. It doesn't give you a reason the company should pay it.

Where does the first offer come from?

Usually a spreadsheet. Many employers set severance with a formula tied to your title and years of service, then apply it to everyone leaving at once. That formula is built to fit a budget. It doesn't measure what your claims are worth.

That's why two people with the same title and tenure can walk away with different deals. The one who negotiated had a reason for the company to pay more.

What is the company actually paying for?

A severance agreement is a trade. The company pays you, and you sign a release giving up your right to sue over anything that happened during your job, including claims you don't know about yet. (Our guide to red flags in a California severance agreement covers what else to watch for in that release.)

So the real question behind "how much should I ask for" is: how much is my release worth to them? If you have no realistic claims, the answer may be close to what they offered. If you have a strong claim, the answer can be a lot more.

What gives you leverage?

Leverage is anything that makes the company nervous about what happens if you don't sign. The most common sources:

• You complained before you were let go. Telling a manager or HR about harassment or discrimination is protected activity, and California law prohibits employers from retaliating against workers who assert their rights under the Fair Employment and Housing Act.
• You reported something illegal. California protects workers who disclose information to a government or law enforcement agency, or who refuse to take part in activity that would violate a state or federal law (Lab. Code § 1102.5).
• You raised a wage or safety issue. California bars retaliation for filing a bona fide complaint or claim, including unpaid-wage complaints (Lab. Code § 98.6), and for complaining about unsafe working conditions (Lab. Code § 6310).
• You took protected leave or asked for an accommodation. Firing someone soon after medical leave, pregnancy leave, or a disability accommodation request invites a hard look at the reason.
• You're in a protected group and the "reasons" don't add up. California's Fair Employment and Housing Act covers employers with 5 or more employees and protects characteristics including age (40 and over), disability, race, sex and gender, and sexual orientation.
• The paperwork has problems. A deadline shorter than the law allows, or an age waiver that misses federal requirements, can weaken the release the company is trying to buy. If you're 40 or older, read our guide to severance rights over 40.
• You know things or have things they need. Key client relationships, transition help, or institutional knowledge can matter, even with no legal claim at all.

Timing is a big part of leverage. A termination that follows a complaint by a few weeks tells a different story than one that follows it by two years.

What could a claim be worth?

This is what drives a serious counteroffer. If you sued under the Fair Employment and Housing Act and won, California's Civil Rights Department lists remedies that can include back pay, front pay, out-of-pocket expenses, damages for emotional distress, punitive damages, and attorney's fees and costs.

Every case is unique, and nobody can promise what a claim would bring. But the company's lawyers can run this same math, and they also price in what it costs to defend a case at all. That gap between "pay a little more now" and "pay lawyers for two years" is where negotiations happen.

How do you pick the number?

Start with what you lose by leaving: how long it will realistically take to find comparable work, what you'll pay for health coverage in the meantime, and any bonus, commission, or equity you're walking away from. That's your floor.

Then add what your release is worth to them based on your leverage. The stronger the claim, the further above the formula your number can go.

A few practical points:

• Ask with a reason. "I want more" is easy to say no to. A counteroffer tied to specific facts gives the company something to evaluate.
• Money isn't the only term. Extra months of paid COBRA premiums, a neutral reference, accelerated vesting, an agreement not to contest unemployment, and mutual non-disparagement all have real value.
• Don't burn your deadline. California requires an employer offering a separation agreement to give you at least five business days to consult a lawyer (Gov. Code § 12964.5(b)(4)), and workers 40 and older often get 21 or 45 days. Use that time, but don't let it run out.
• Know the risk. An employer can withdraw an offer. How you negotiate matters as much as the number you ask for.

The takeaway

Forget percentages and multiples. The right severance number is what your release is worth to the company, and that depends on facts only you know: what happened before you were let go, what you reported, and how they handled it. Write those facts down while they're fresh, gather your offer letter and any emails that back them up, and get your leverage assessed before you counter.

This article is general information about California and federal law as of its date, not legal advice for your situation. Laws change, and the right move depends on your facts.