Severance Pay Calculator — Connecticut

Severance Pay Laws in Connecticut

Connecticut has its own mini-WARN statute under Conn. Gen. Stat. §31-51n et seq., which generally tracks the federal WARN Act's sixty-day notice requirement but extends coverage to certain plant closings and relocations not covered by federal law. The state also imposes a continued-health-insurance benefit for affected employees for up to 120 days following a covered plant closing, which federal WARN does not require. That continued-coverage obligation is unusual and can be a meaningful component of value in any Connecticut layoff negotiation.

Final wages in Connecticut are governed by Conn. Gen. Stat. §31-71c, which requires payment of all earned wages — including accrued vacation that is payable under company policy — on the next business day following an involuntary termination. Voluntary resignations are paid on the next regular payday. The Connecticut Department of Labor enforces the statute and an employee may recover double damages plus attorney's fees for willful nonpayment under §31-72.

On non-competes, Connecticut Public Act 23-97 (effective 2023) prohibits non-competes for hourly workers and limits non-competes for higher-earning workers to those reasonable in scope, duration (no more than one year), and geographic reach. The statute also requires the employer to disclose the terms in writing before the employee accepts the offer. Courts apply the statute strictly. Trade-secret protections under the Connecticut Uniform Trade Secrets Act run independently.

On discrimination, the Connecticut Fair Employment Practices Act (CFEPA, Conn. Gen. Stat. §46a-60) applies to all employers with three or more employees — much broader than federal Title VII — and provides protections across a wide list of categories including sexual orientation, gender identity, and family responsibility. The Connecticut Commission on Human Rights and Opportunities administers claims with a parallel private right of action.

Connecticut's economy is anchored by finance and insurance (Hartford and Stamford), aerospace (Pratt & Whitney, Sikorsky), healthcare, and pharmaceuticals. These industries have produced sophisticated severance practices that materially exceed the state's statutory floor — particularly in finance, where Stamford-based hedge funds and trading firms compete for talent against New York packages. For employees forty and over signing a separation agreement, the federal ADEA provides the standard 21-day review window (45 days for group layoffs) and 7-day revocation period after signing.

How Much Severance Are Connecticut Workers Owed?

Connecticut employees in finance, aerospace, and pharmaceuticals typically receive two to four weeks of severance per year of service for individual contributors, with Stamford finance packages running highest. Healthcare and government come in closer to the modeled midpoint, and retail and hospitality come in below.

Industry Benchmarks for Connecticut

In Connecticut, Stamford finance and Hartford insurance pay above the modeled midpoint; retail and hospitality come in below.

Frequently Asked Questions — Connecticut Severance