While California law does not require employers to offer severance pay, providing it in exchange for a release of claims can be a strategic move to avoid future litigation when parting ways with employees. For at-will employees, where no contract mandates severance, an employer may still benefit from offering a severance package in specific situations
Even though severance pay is not required under California law, employers facing disputes with exiting employees should consider offering severance pay in exchange for a release of claims in order to preempt potential litigation. If an employee is at-will and either the employer or the employee decides to end the employment relationship, unless there is