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

[Update: AB 3080 was vetoed by the Governor on September 30, 2018, and will not become law.  Click here to see other bills that were approved by the Governor and will become law for California employers in 2019.]

California legislature passed AB 3080 which prohibits employers from entering into arbitration agreements with employees and