California

State Worker Inbox: Can California state government pay severance?

Can a state agency give severance pay to a separating employee? – Anonymous

A reader asked this question after The State Worker announced a new feature on Facebook last week. We’re calling it Inbox.

People often ask us about civil service rules, pay and benefits, union happenings and other topics surrounding state work. Sometimes the questions lead to stories, but often they don’t. This is a way for us to try to address some of the questions that don’t fit into a traditional news format.

We’re envisioning a twice-a-month schedule. Send your questions to wventeicher@sacbee.com or message us on Facebook or Twitter. Spread the word to your co-workers, too.

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Turning to this week’s question:

In the private sector, severance is sometimes paid when employers lay off workers. The payment can be based on years of service and other factors.

It’s harder to lay off a state employee than a private sector employee, and it rarely happens in California state government.

There doesn’t appear to be a mechanism in place in state government to lay off an employee and pay them severance, nor does there appear to be any prohibition on it, said CalHR spokesman Andrew LaMar.

“There is no state or federal law that requires employers to provide severance pay,” LaMar said in an email. “I can’t find any mention of severance pay in CalHR’s Online HR Manual. No one here is aware of any policy regarding state workers getting severance pay, and (we) don’t know of instances in which it has happened.”

Settlement payments are another matter. In state service, settlement agreements often include payments to workers on the condition that the employee will leave state service and not return.

Settlement agreements in state service only occur when someone sues an employer and both sides agree on them to avoid a trial.

This story was originally published December 18, 2019 at 5:00 AM with the headline "State Worker Inbox: Can California state government pay severance?."

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Wes Venteicher
The Sacramento Bee
Wes Venteicher is a former reporter for The Sacramento Bee’s Capitol Bureau.
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