Washington State Severance Pay

What Is a Severance Agreement?

A severance agreement is a contract between an employer and an employee signed upon termination. Severance pay is then offered as part of that agreement, which may also contain other benefits such as continuation of healthcare known as Consolidated Omnibus Budget Reconciliation Act (COBRA) or job counseling services, thus creating a severance package. COBRA allows workers and their families the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss.

Are Employers Required to Provide Severance Pay?

No. Employers in Washington state are not required to offer severance pay as it is considered a voluntary benefit. However, if an employee was promised severance pay in an employment contract, company policy manual, or union contract, that promise must be upheld. If your employer denies you those benefits, you should contact an Washington State Severance Pay Attorney immediately.