What are the laws governing severance pay?

In California, employers must provide severance pay in certain situations. Generally, these situations are limited to when an employee is laid off or fired without cause. Severance pay is paid out to the employee to help compensate them for the loss of their job. Under the California Labor Code, employers must provide severance pay to employees they have laid off without a cause. This pay must be equal to at least one day of pay for every six months of service. For example, if an employee was employed for one year, they will be entitled to at least two days of severance pay. Additionally, if an employee is fired without cause, employers must still provide them with severance pay. This pay must be equal to at least one week of pay for every year of service. For example, if an employee was employed for three years, they will be entitled to at least three weeks of severance pay. If an employer violates California labor law by not providing their employees with severance pay, the employee can file a complaint with the Division of Labor Standards Enforcement (DLSE). The DLSE will investigate the complaint and, if found to be valid, may order the employer to pay the employee the amount of severance pay they are entitled to.

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What are the laws governing severance pay?

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