The HR Hub

How Much Severance? What you should pay in the US.


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As an HR Consultant I'm commonly asked "how much severance should I pay?" and the answer is it depends and maybe you should consult a lawyer.

This episode is for Americans. I spoke with employment lawyer Leah Stiegler from Woods Rogers who outlined what drives severance decisions in America.

We cover the critical difference between what you're legally required to pay (often nothing) and what makes business sense when you're trying to avoid litigation which is likely to cost you a lot more than severance.

What you'll learn:

  • Why severance is almost purely a business decision in the US
  • The biggest mistake people teams make around severance
  • The importance of employment contracts
  • When you need a lawyer
  • Factors that determine severance amounts: age, position level, and litigation risk

Leah is engaging and shared why paying severance without a legal release is like giving someone a bonus and then letting them sue you anyway. We also talked about disparagement clauses - how do you enforce them anyhow?

No matter why you are terminating, this episode gives you a framework for thinking through the risks and costs involved.

About Leah Stiegler Leah is a management-side employment lawyer and partner at Woods Rogers. She hosts the YouTube series "What's the Tea in L&E" and was recently interviewed by the New York Times for her workplace romance article (also a podcast episode!).

Find me at https://thehrhub.ca


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The HR HubBy Andrea Adams

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