Severance pay in case of a layoff

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in Firing,Human Resources

Q. Does Colorado require severance pay if companies do layoffs?

A. No. No state or federal law requires severance pay. However, if companies voluntarily adopt such a plan, then it may be enforceable. If a company decides to offer severance pay, it should consider whether to require employees to sign a waiver-and-release agreement in exchange for the severance pay.

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