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

07/10/2025 22 min

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

Episode Synopsis

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 USThe biggest mistake people teams make around severanceThe importance of employment contractsWhen 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