CA
6.6% california supplemental withholding
California's Cal-WARN (Cal. Lab. Code §§ 1400–1408) requires 60 days advance written notice for any mass layoff affecting 50+ employees at facilities with 75+ workers — broader than federal WARN. State supplemental tax withholds severance at 6.6%; stock/bonus payments at 10.23%.
NY
90 days nys-warn notice period
NYS-WARN (N.Y. Lab. Law § 860 et seq.) requires 90 days advance notice for layoffs of 25+ employees at one site by employers with 50+ workers — 30 days longer than federal WARN. New York withholds severance at 11.70% state supplemental rate (NYC residents add ~4.25% city supplemental).
TX
60 days federal warn notice
Texas has no state mini-WARN and no state income tax. Only federal WARN (29 U.S.C. §§ 2101–2109) applies to layoffs at employers of 100+, requiring 60 days notice. Severance is withheld at the federal 22% supplemental rate (37% above $1,000,000 cumulative) plus FICA.
FL
22% federal supplemental withholding
Florida has no state mini-WARN and no state income tax. Only federal WARN (29 U.S.C. ch. 23) applies. Severance is taxed at the federal 22% supplemental rate (37% above $1M cumulative) plus FICA; no state withholding applies.
NJ
1 week / year nj-warn statutory severance
New Jersey is one of only two states that mandates statutory severance: the NJ-WARN Act (N.J. Stat. § 34:21-1 et seq., as amended April 10, 2023) requires employers with 100+ employees to pay one week of severance per full year of service plus 90 days advance notice for covered mass layoffs, transfers, or terminations. NJ has no flat supplemental withholding rate — severance is withheld via graduated NJ-WT (1.4%–11.8% by bracket); this calculator uses 6.37% as a blended middle-bracket estimate for the typical severance-recipient income range ($75K–$500K).
IL
60 days il-warn notice period
Illinois WARN (820 ILCS 65/) requires 60 days advance notice for mass layoffs at employers with 75 or more full-time employees — broader than federal WARN (100+). Severance is taxed at Illinois's flat 4.95% income-tax rate (same rate applies to regular wages and supplemental pay). The Illinois Freedom to Work Act (820 ILCS 90/) voids most non-competes for employees earning $75,000 or less annually.
MA
50% of base massachusetts garden leave act minimum
Massachusetts has no enforceable mini-WARN: Mass. Gen. Laws c. 151A § 71B is a notification-to-DUA statute with no employer-to-employee notice mandate or penalty, so federal WARN (29 U.S.C. §§ 2101–2109) is the operative regime for MA layoffs. The Massachusetts Noncompetition Agreement Act (c. 149 § 24L) — the state's distinctive feature — requires any post-employment non-compete to include a garden-leave clause paying at least 50% of base salary during the restricted period (max 12 months) AND voids non-competes against employees who were laid off or terminated without cause. Severance is taxed at MA's flat 5% rate, with a 4% surtax on Part B taxable income above $1,107,750 (tax year 2026).
WA
60 days washington mini-warn notice
Washington has no state income tax and the Washington Mini-WARN Act (SB 5525, effective July 27 2025) requires 60 days notice for layoffs of 50+ employees at employers with 50+ in-state employees (excluding part-time) — a materially lower threshold than federal WARN's 100-employee floor. The 0.58% WA Cares premium does NOT apply to post-separation severance.
PA
$28,153.63 pennsylvania uc severance offset threshold (2026)
Pennsylvania's biggest severance-specific rule is the UC severance offset: under 43 P.S. § 804(d)(iii) (added by Act 6 of 2011, effective January 1, 2012), severance pay in excess of 40% of the PA average annual wage reduces UC benefits — the 2026 threshold is $28,153.63 (40% of the $70,384.08 PA AAW), per the PA Department of Labor & Industry severance/pension FAQ. Pennsylvania has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is withheld at PA's flat 3.07% personal income tax rate (in effect since 2004); local Earned Income Tax and the Philadelphia Wage Tax can add 1%–3.74% on top depending on residence and work location.
GA
≤ 2 years georgia restrictive covenants act presumption
Georgia's most distinctive severance-package rule is the Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq., effective May 2011): enforceable post-employment non-competes are limited to four classes of workers — managers, sales employees, 'key employees,' and 'professionals' (O.C.G.A. § 13-8-51) — and covenants of two years or less are presumptively reasonable under O.C.G.A. § 13-8-57(b), with express judicial blue-pencil (modification) authority under O.C.G.A. § 13-8-53(d). Georgia has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is taxed at GA's flat 5.19% rate for 2026 (HB 111 signed April 15, 2025; per the GA DOR 2026 Employer's Withholding Tax Guide). The Georgia Department of Labor's UI FAQ states claimants are 'usually not eligible' for unemployment during the period severance pay covers.
AL
$50,000 alabama severance tax exemption
Alabama's most distinctive severance-package rule is the Alabama Severance Pay Exemption — Ala. Code § 40-18-19.1 — which per the Alabama Department of Revenue provides an 'exemption from Alabama income tax on severance pay in an amount equal to but not to exceed $50,000' for 'employees who lose their job as a result of administrative downsizing,' subject to annual employer application to ADOR. Alabama has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is otherwise withheld at Alabama's graduated 2% / 4% / 5% rate (top bracket above $3,000 single, so ~5% on most severance). Non-competes are governed by Ala. Code §§ 8-1-190 to 8-1-197 (Restrictive Covenants Act, 2016): two years presumptively reasonable.
AK
0% alaska state income tax on wages
Alaska has NO state income tax on wages — Alaska repealed its prior wage tax in 1980 contemporaneous with the founding of the Alaska Permanent Fund, becoming the first U.S. state to repeal an individual income tax. Severance is subject only to federal supplemental withholding (22% / 37% above $1M cumulative) and FICA. Alaska also has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. UI severance offset under AS 23.20. Non-competes are common-law under Data Management, Inc. v. Greene, 757 P.2d 62 (Alaska 1988) reasonableness test with no judicial blue-pencil.
AZ
A.R.S. § 23-1501 arizona at-will + right-to-work
Arizona is a strong at-will employment state (A.R.S. § 23-1501) and a constitutional right-to-work state (Ariz. Const. art. XXV; A.R.S. § 23-1302), with no statutory minimum severance and no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is withheld at the employee's elected Form A-4 percentage (0.5%–3.5%, or the 2.0% default), and the year-end Arizona liability is computed at the 2.5% flat income-tax rate (A.R.S. § 43-1011). Arizona DES allocates severance to specific weeks and disqualifies UI for any week the allocated severance exceeds the weekly benefit amount.
AR
3.9% arkansas top marginal rate
Arkansas reduced its top individual income tax rate to 3.9% (Ark. Code § 26-51-201) under H.B. 1001 of the 2024 Second Extraordinary Session — retroactive to January 1, 2024 — culminating a multi-year glidepath from 5.5% in 2022. Arkansas has no state mini-WARN; federal WARN (29 U.S.C. §§ 2101–2109) controls. UI offset rules live at Ark. Code § 11-10-507 / § 11-10-513. Non-competes are governed by Ark. Code § 4-75-101 (Act 921 of 2015) — Arkansas courts have express judicial blue-pencil authority.
CO
$130,014 colorado non-compete hcw threshold
Colorado significantly limits non-competes: under C.R.S. § 8-2-113 (as overhauled by HB22-1317, effective August 10, 2022, and further amended by SB 25-083 effective August 6, 2025), most post-employment non-competes are void unless the worker earns at least $130,014 in annualized cash compensation (the 2026 CDLE-set highly-compensated-worker threshold) AND the covenant protects trade secrets AND the employer gave statutory pre-hire notice. Colorado has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is withheld at Colorado's flat 4.40% income-tax rate.
CT
6.99% connecticut top marginal rate
Connecticut has NO state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls for mass layoffs and plant closings at employers of 100+. Connecticut DOES have a distinctive plant-closing health-continuation rule at Conn. Gen. Stat. § 31-51o, separate from federal COBRA. CT withholds severance using an aggregate method per IP 2026(1) Circular CT (top marginal 6.99%; default flat 6.99% if no Form CT-W4 on file). CT Paid Leave (0.5% employee contribution, up to 12 weeks of benefits) is funded under Public Act 19-25.
DE
$1,000 / day delaware warn civil penalty
Delaware has its own mini-WARN at 19 Del. C. ch. 19 §§ 1901–1911 — federal-WARN-equivalent thresholds (100+ employees, 50+/33% or 500+ affected, 60 days notice) PLUS a unique requirement to notify the Delaware Workforce Development Board AND a $1,000/day civil penalty (vs federal $500/day). The Healthy Delaware Families Act (codified at 19 Del. C. ch. 37) goes live Jan 1, 2026 for benefits — employees began submitting claims that day; payroll deductions began Jan 1, 2025. Delaware uses an annualization method for supplemental wages (top marginal 6.60%); no separate flat supplemental rate.
DC
$150,000 / $250,000 district of columbia non-compete ban threshold
The District of Columbia has TWO of the most distinctive employee-protection statutes in the United States. (1) The Universal Paid Leave Amendment Act of 2016 (D.C. Act 21-264) provides up to 2 weeks pregnancy + 12 weeks parental + 12 weeks own-serious-health + 12 weeks family-caregiving leave — fully EMPLOYER-funded by a payroll tax of 0.26%. (2) The DC Ban on Non-Compete Agreements Amendment Act (D.C. Code § 32-581.01, effective October 1, 2022) BANS non-competes against employees earning under $150,000 ($250,000 for medical specialists), CPI-indexed annually. DC has no mini-WARN — federal WARN controls. Top marginal income-tax rate is 10.75% above $1M (D.C. Code § 47-1806.03).
HI
11.0% hawaii top marginal rate (2026)
Hawaii has THREE headline distinctions for severance. (1) State mini-WARN: the Hawaii Dislocated Workers Act, Haw. Rev. Stat. ch. 394B, with a UNIQUE dislocation-allowance income subsidy beyond mere notice. (2) Statewide MANDATORY Temporary Disability Insurance under HRS § 392 — the ORIGINAL 1969 statewide STD program in the U.S. (58% wage replacement; employee contribution ≤0.5% of wages). (3) 11.0% top marginal income tax on Hawaii taxable income above $200,000 single / $400,000 MFJ (Haw. Rev. Stat. § 235-51, 12-bracket graduated — the MOST brackets of any U.S. state). Hawaii also bans non-competes for technology-sector workers under HRS § 480-4(d) (HB 1090 of 2015).
ID
5.3% idaho flat income tax (2026)
Idaho has THREE distinctive features for severance. (1) FLAT 5.3% individual income tax under Idaho Code § 63-3024 — the latest stop on Idaho's multi-year reduction glidepath (6.5% 2021 → 6.0% → 5.8% → 5.695% → 5.3% effective 2025 forward per HB 521 of 2024 and 2025 ch. 13). (2) NO state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. (3) Statutory non-compete framework under Idaho Code §§ 44-2701 to 44-2704: non-competes are enforceable ONLY against 'key employees' or 'key independent contractors' (defined narrowly in § 44-2702); HB 487 of 2018 removed the prior presumption-of-irreparable-harm for employers seeking injunctive relief.
IN
2.95% indiana state income tax (2026)
Indiana has TWO distinctive features for severance. (1) Single FLAT 2.95% individual income tax for 2026 under Ind. Code § 6-3-2-1, reduced by H.E.A. 1001 of 2023 on a glidepath: 3.15% (2023) → 3.05% (2024) → 3.00% (2025) → 2.95% (2026) → 2.90% (2027). On top of that, each of Indiana's 92 counties levies a local income tax under Ind. Code § 6-3.6 ranging from ~0.5% to ~3.38%, combined effective rate ~3.45%–6.33%. (2) Indiana has NO state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Physician non-competes are statutorily limited under Ind. Code § 25-22.5-5.5 and SEA 7 of 2023.
IA
3.8% iowa flat income tax (2026)
Iowa has TWO distinctive features for severance. (1) Iowa WARN (Iowa Code Chapter 84C, Worker Adjustment and Retraining Notification Act) covers employers with 25 or more employees — much lower than federal WARN's 100-FTE trigger — and requires 30 calendar days' advance notice before a plant closure or mass layoff. (2) Iowa's individual income tax converted to a single FLAT 3.8% rate effective 2026 under Senate File 2442 of 2024, accelerating the prior SF 2417 glidepath by one year. Severance is taxed at 3.8% state plus federal 22% supplemental and FICA. Severance is FULLY DEDUCTIBLE from Iowa UI benefits on a dollar-for-dollar basis under Iowa Admin Code 871-24.13.
KS
5.58% kansas top marginal rate (2026)
Kansas operates a two-bracket individual income tax under K.S.A. § 79-32,110: 5.20% up to $23,000 single / $46,000 MFJ, and 5.58% above (after SB 1 of the 2024 Special Session collapsed three brackets to two and cut the top rate from 5.7% to 5.58%). Kansas SB 269 of 2025 made future cuts revenue-contingent — additional reductions depend on revenue and stabilization-fund balance. Kansas has NO state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. UI severance offset under K.S.A. § 44-706. Common-law non-competes under Weber v. Tillman, 259 Kan. 457 (1996).
KY
3.5% kentucky flat income-tax rate (2026)
Kentucky's flat individual income tax rate dropped from 4.0% to 3.5% effective January 1, 2026 under H.B. 1 of the 2025 General Assembly — completing a glidepath established under H.B. 8 of 2022 conditioned on revenue triggers. Because KY uses a flat rate (KRS 141.020), there is no separate supplemental rate — severance, bonuses, and commissions all withhold at 3.5%. Kentucky has no mini-WARN; federal WARN (29 U.S.C. §§ 2101–2109) controls. Non-competes are common-law under Charles T. Creech, Inc. v. Brown, 433 S.W.3d 345 (Ky. 2014), which requires SEPARATE consideration beyond continued at-will employment for covenants signed mid-employment.
LA
3% louisiana flat income-tax rate
Louisiana converted to a SINGLE FLAT 3.0% individual income tax effective January 1, 2025 under Act 11 (H.B. 10) of the 2024 Second Extraordinary Session, codified at La. R.S. 47:32(A) — replacing the prior graduated 1.85% / 3.5% / 4.25% structure. The same 3.0% applies to all wages including severance. Louisiana has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Louisiana's non-compete statute at La. R.S. 23:921 is uniquely strict: covenants must (1) be in writing, (2) name specific parishes/municipalities by name or description, (3) last no more than TWO YEARS from termination, and (4) restrict only the same/similar business — failure on any element voids the covenant.
ME
1 week / year maine statutory severance
Maine is one of only two states that statutorily mandates severance: 26 M.R.S. § 625-B requires employers operating a 'covered establishment' (any facility that has employed 100+ persons in the preceding 12 months) to pay 1 week of severance per year of service — plus partial pay for any partial year — upon a closing, substantial shutdown, or relocation. Severance is taxed at Maine's flat 5% supplemental rate when paid separately from regular wages (Maine Revenue Services 2026 Withholding Tables); graduated brackets are 5.80% / 6.75% / 7.15% if combined with regular pay. Maine also bars non-competes for workers earning at or below 400% of the federal poverty level under 26 M.R.S. § 599-A.
MD
$10,000 / day maryland esa civil penalty
Maryland has a state mini-WARN — the Economic Stabilization Act, Md. Code Lab. & Empl. §§ 11-301 to 11-306 — converted from voluntary to MANDATORY by SB 780 (Chapter 407 of 2020 Md. Laws, signed May 8, 2020, effective October 1, 2020). 50-employee threshold, 60-day notice, civil penalties up to $10,000/day. Maryland taxes severance at 5.75% top state rate PLUS each resident's county piggyback (2.25%–3.20%), for typical combined withholding of 7.95%–8.95%.
MI
4.25% michigan flat income tax (2026)
Michigan operates a flat individual income tax under MCL § 206.51 at 4.25% for 2026 (the 2023 one-year drop to 4.05% under the revenue-trigger formula did not carry forward — the Treasury determined the trigger produces a single-year cut). 24 Michigan cities also levy local income tax under MCL § 141.501 et seq. (Detroit 2.4%/1.2%, Grand Rapids 1.5%/0.75%, etc.). Michigan has NO state mini-WARN — federal WARN controls. UI severance offset under MCL § 421.48 ('severance payments, salary continuation, or other remuneration intended as continuing wages' allocated to designated periods). Non-competes governed by MCL § 445.774a reasonableness standard.
MN
Void minnesota non-compete ban
Minnesota became the fourth state to enact a broad statewide non-compete ban: Minn. Stat. § 181.988 (effective July 1, 2023) voids any post-employment non-compete signed on or after that date, regardless of employee income, with narrow carve-outs only for sale-of-business and dissolution. Minnesota has NO enforceable mini-WARN — § 116L.976 is a voluntary early-warning/reporting statute with no employer-to-employee notice mandate or penalty — so federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is withheld at MN's flat 6.25% supplemental rate, and under Minn. Stat. § 268.085 subd. 3b severance reduces or eliminates unemployment benefits during the weeks it is allocated to.
MS
4.0% mississippi flat income-tax rate (2026)
Mississippi's individual income tax dropped to a flat 4.0% for 2026 (down from 4.4% in 2025, 4.7% in 2024, and 5.0% in 2022) under H.B. 531 of the 2022 Legislature, the Mississippi Tax Freedom Act. Mississippi now has a SINGLE FLAT RATE structure above a fixed exemption ($10,000 single / $20,000 MFJ). Mississippi has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. UI offset rules at Miss. Code § 71-5-503. Non-competes are common-law under Empiregas, Inc. v. Bain, 599 So. 2d 971 (Miss. 1992).
MO
4.7% missouri top marginal rate (2026)
Missouri operates a graduated individual income tax under RSMo § 143.011 with a 4.7% top marginal rate for 2026 (down from 4.95% in 2023 under SB 3 of the 2022 Special Session glidepath, target 4.5% by 2027 conditioned on revenue triggers). Kansas City and St. Louis additionally levy a 1% earnings tax. Missouri has NO state mini-WARN — federal WARN controls. Distinctive UI rule under RSMo § 288.060(4): 'the claimant may, at his or her option, choose to have such payment included in the calendar quarter in which it was paid or choose to have it prorated equally among the quarters comprising the base period.' Common-law non-competes under Healthcare Services of the Ozarks v. Copeland, 198 S.W.3d 604 (Mo. 2006).
MT
MCA § 28-2-703 montana non-compete statutory void
Montana has THREE headline distinctions for severance — two nearly unique among the 50 states. (1) MCA § 28-2-703 statutorily VOIDS most employer non-compete agreements (with narrow goodwill-sale and partnership-dissolution exceptions in §§ 28-2-704 and 28-2-705 — similar to CA Bus. & Prof. § 16600, ND § 9-08-06, OK 15 OK Stat. § 219A, MN HF 100 of 2023). (2) Montana is the ONLY U.S. state with STATUTORY JUST-CAUSE termination protection — the Wrongful Discharge from Employment Act (WDEA), MCA §§ 39-2-901 to 39-2-915 (1987) — displacing at-will employment after the probationary period (default 12 months). (3) Two-bracket graduated income tax 4.7% / 5.9% (MCA § 15-30-2103, per SB 121 of 2021).
NE
4.55% nebraska top marginal rate (2026)
Nebraska's individual income tax under Neb. Rev. Stat. § 77-2715.03 has a top marginal rate of 4.55% for 2026 (down from 5.20% in 2025 under LB 754 of 2023 glidepath, target 3.99% by 2027). Nebraska has NO state mini-WARN — federal WARN controls. Lump-sum severance is prorated against UI benefits under Neb. Rev. Stat. § 48-628. NEBRASKA IS DISTINCTIVELY EMPLOYEE-FRIENDLY ON NON-COMPETES: under Polly v. Ray D. Hilderman & Co., 225 Neb. 662 (1987), and CAE Vanguard, Inc. v. Newman, 246 Neb. 334 (1994), a non-compete restraining ORDINARY competition is VOID — enforceable only against competition for ACTIVE customers with whom the employee had personal contact while employed.
NV
0% nevada state income tax on wages
Nevada has THREE distinctive features for severance. (1) NO state income tax on wages — Nevada has never adopted a broad-based individual income tax. (2) No state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. (3) NRS § 613.195 (added by AB 47 of 2017, expanded by SB 295 of 2019) imposes UNIQUE statutory requirements on non-competes — most importantly NRS 613.195(5) limits enforceability to the period during which the employer is paying severance, and NRS 613.195(3) exempts hourly workers entirely. NV courts MUST award attorney's fees to employees who successfully challenge void covenants (NRS 613.195(7)).
NH
0% new hampshire state income tax
New Hampshire has NO state income tax on wages — and the narrower Interest and Dividends Tax (NH RSA Ch. 77) was REPEALED EFFECTIVE JANUARY 1, 2025 per 2021, 91:189, II, so for tax year 2026 New Hampshire has zero state income tax on either earned or unearned income. New Hampshire has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is taxed only at the federal 22% supplemental rate (37% above $1M cumulative) plus FICA. NH RSA 275:70-a voids non-competes against workers earning at or below 200% of the federal minimum wage.
NM
5.9% new mexico top marginal rate (2026)
New Mexico has THREE features for severance. (1) Graduated individual income tax with TOP marginal rate of 5.9% on NM taxable income above ~$210,000 single (NMSA § 7-2-7). (2) No state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. (3) HEALTHCARE-PRACTITIONER NON-COMPETE BAN under the Health Care Practitioner Restrictive Covenant Act, NMSA §§ 24-1l-1 to 24-1l-4 (HB 165 of 2020) — non-competes against physicians, CRNAs, CNPs, CNMs, dentists, and psychologists are UNENFORCEABLE. For non-healthcare workers, common-law reasonableness under Bowen v. Carlsbad Insurance, 104 N.M. 514 (1986).
NC
Common law north carolina non-compete review standard
North Carolina is a strong at-will employment and right-to-work state (N.C. Gen. Stat. § 95-78), with no statutory minimum severance and no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. The flat individual income tax rate is 3.99% for 2026 (down from 4.25% in 2025 per Session Law 2023-134); NCDOR publishes a separate 4.09% supplemental withholding rate for severance and bonuses in the 2026 NC-30. NC has no non-compete statute — enforceability is governed by common-law reasonableness review (United Laboratories, Inc. v. Kuykendall, 322 N.C. 643, 370 S.E.2d 375 (1988)) under a strict blue-pencil rule (Beverage Systems of the Carolinas, LLC v. Associated Beverage Repair, LLC, 368 N.C. 693, 784 S.E.2d 457 (2016)). Severance delays unemployment under N.C. Gen. Stat. § 96-14.2(c) — lump sums are allocated to weeks at the worker's prior weekly rate.
ND
2.50% north dakota top marginal rate (2026)
North Dakota has TWO headline distinctions for severance. (1) Top marginal individual income tax rate of 2.50% under N.D.C.C. § 57-38-30.3 — tied for the LOWEST top rate among states with an income tax (Arizona's 2.5% flat is comparable). Three-bracket structure: 0% / 1.95% / 2.50%, with 0% extending to ~$48,475 single / ~$80,975 MFJ. (2) N.D.C.C. § 9-08-06 statutorily VOIDS most non-compete agreements — the section is titled 'In restraint of business void — Exceptions' and was the historical model for California's near-identical Cal. Bus. & Prof. Code § 16600. North Dakota is one of only a handful of states (CA, ND, OK, MN as of 2023) where most employer post-employment non-competes are categorically void by statute. No state mini-WARN — federal WARN controls.
OH
Normal weekly wage / week ohio severance-ui allocation rule
Ohio's most distinctive severance-package rule is the unemployment-offset interaction under Ohio Rev. Code § 4141.31(A) (Benefits reduced by remuneration): separation, dismissal, or severance pay reduces ODJFS weekly benefits dollar-for-dollar during the period the payment covers, and if the employer does not designate a specific allocation period, the statute defaults to attributing an amount equal to the claimant's normal weekly wage to the first and each succeeding week after separation until the lump sum is exhausted — so a lump-sum severance generally delays (but does not permanently disqualify) Ohio UI. Ohio Rev. Code § 4141.29 separately treats remuneration in lieu of notice and severance as remuneration for qualifying-week purposes. For 2026 Ohio adopts a flat 2.75% individual income tax on nonbusiness income above $26,050 (Am. Sub. H.B. 96, signed June 30, 2025); the Ohio Department of Taxation supplemental withholding rate also dropped to 2.75% effective January 1, 2026 (from 3.5% in 2025). On top of state tax, more than 700 Ohio municipalities levy local income tax (Columbus 2.5%, Cleveland 2.5%, Akron 2.5%, Toledo 2.25%, Dayton 2.25%, Cincinnati 1.8%). Ohio has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Ohio non-compete law is entirely common-law under Raimonde v. Van Vlerah, 42 Ohio St.2d 21 (1975).
OK
15 OK Stat. § 219A oklahoma non-compete statutory void
Oklahoma has TWO headline distinctions for severance. (1) 15 OK Stat. § 219A statutorily VOIDS most employer non-competes, allowing only a narrow CUSTOMER-SOLICITATION carve-out for established customers (places Oklahoma with CA Bus. & Prof. § 16600, ND § 9-08-06, MT § 28-2-703, MN HF 100 of 2023). (2) Oklahoma's top marginal individual income tax rate was REDUCED from 4.75% to 4.5% effective January 1, 2026, with the bracket structure collapsed from six brackets to three (per 2024 Oklahoma tax legislation under 68 OK Stat. § 2355). No state mini-WARN — federal WARN controls.
OR
$119,541 oregon non-compete salary floor
Oregon caps non-competes tightly: ORS 653.295 (as amended by SB 169, 2021) voids any post-employment non-compete unless the worker earns more than $119,541 annualized (the 2026 BOLI-published threshold), the agreement is capped at 12 months, and the employer gave written notice at least 2 weeks before employment began. The Oregon Workplace Fairness Act (ORS 659A.370) separately restricts NDA, non-disparagement, and no-rehire clauses in separation agreements covering discrimination, harassment, or sexual assault — and requires at least 7 days to consider plus 7 days to revoke. Oregon has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is withheld at Oregon's 8% flat supplemental rate per Form 150-206-436.
RI
5.99% rhode island top marginal rate
Rhode Island's most distinctive feature is the state Temporary Disability Insurance program (TDI) — operational since 1942 under R.I. Gen. Laws Chapter 28-41 — one of only five states with a statewide STD program (CA, NY, NJ, HI, RI). TCI (Temporary Caregiver Insurance, added 2013) adds up to 8 weeks of paid family-bonding/caregiving leave. RI has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. State income tax is graduated 3.75% / 4.75% / 5.99% (top marginal); no separate flat supplemental rate.
SC
6.0% south carolina top marginal rate
South Carolina's individual income tax top marginal rate dropped to 6.0% (S.C. Code § 12-6-510) for 2026, down from 7.0% pre-2022 on the multi-year glidepath under Act 142 of 2022 (Comprehensive Tax Cut Act). The top bracket begins at just ~$17,330 single, so most severance is effectively withheld at 6.0%. South Carolina has no mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Non-competes are common-law under Standard Register Co. v. Kerrigan, 238 S.C. 540 (1961) reasonableness test — South Carolina courts have historically REFUSED to blue-pencil overbroad covenants.
SD
0% south dakota state income tax on wages
South Dakota has NO state income tax on wages — never adopted. Severance is subject only to federal supplemental withholding (22% / 37% above $1M cumulative) and FICA. South Dakota also has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. UI severance offset under SDCL § 61-6-19. Non-competes are statutorily governed by SDCL § 53-9-11 with a two-year statutory cap and reasonableness review, operating as a carve-out from the broader restraint-of-trade prohibition in SDCL § 53-9-8.
TN
50+ employees tennessee mini-warn employer threshold
Tennessee has TWO headline distinctions for severance. (1) Tennessee operates a state-level mini-WARN — the Tennessee Plant Closings and Reduction in Operations Notification Act, Tenn. Code Ann. §§ 50-1-601 to 50-1-604 — covering employers with 50+ employees when a 'reduction in operations' affects 50+ employees within three months. (2) Tennessee imposes NO state income tax on wages — the narrow Hall Income Tax on interest and dividends was fully repealed effective January 1, 2021, leaving Tennessee with zero state-level income tax for 2026. Severance is therefore subject only to federal tax (22% supplemental, 37% above $1M cumulative) and FICA. Non-competes are common-law under Allright Auto Parks, Inc. v. Berry, 219 Tenn. 280 (1966) reasonableness test.
UT
4.5% utah flat income tax (2026)
Utah has THREE distinctive features for severance. (1) FLAT 4.5% individual income tax (Utah Code § 59-10-104, per HB 106 of 2025 — Utah's multi-year glidepath 4.95% → 4.85% → 4.65% → 4.55% → 4.5% effective Jan 1, 2025). (2) No state mini-WARN — federal WARN controls. (3) Utah Post-Employment Restrictions Act (Utah Code § 34-51-201, enacted by HB 251 of 2016) caps post-employment non-compete duration at ONE YEAR maximum — a unique statutory hard cap. § 34-51-202 voids non-competes against broadcast employees.
VT
45 days (state) / 30 days (employees) vermont mini-warn notice
Vermont has its own mini-WARN — the Notice of Potential Layoffs Act, 21 V.S.A. §§ 411–414 (effective January 15, 2015) — applying to employers with 50+ employees: 45 days' advance notice to state Commerce + Labor agencies, 30 days to affected employees. Vermont taxes severance at a graduated top marginal of 8.75% (one of the higher state rates) under 32 V.S.A. § 5822. Vermont UI EXPLICITLY offsets severance under 21 V.S.A. § 1344(a)(5)(C).
VA
$1,507.01/week virginia non-compete ban threshold (2026)
Virginia's most distinctive severance-package rule is Va. Code § 40.1-28.7:8 — non-competes are void and unenforceable for any "low-wage employee," which for 2026 means anyone whose average weekly earnings fall below $1,507.01 (the 2026 Virginia Average Weekly Wage published by the Virginia Department of Labor and Industry on January 6, 2026) AND, after the 2025 amendment (Chapter 585, effective July 1, 2025), any worker entitled to FLSA overtime regardless of weekly earnings. Civil penalty $10,000 per violation. Virginia has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. Severance is taxed at Virginia's graduated rate (2% / 3% / 5% / 5.75%) under Va. Code § 58.1-320; the 5.75% top bracket begins at $17,000, so most severance is effectively withheld at 5.75%. Severance is treated as wages allocated to the last day of work under Va. Code § 60.2-229, deducted from VEC benefits after notification.
WV
4.58% west virginia top marginal rate (2026)
West Virginia cut its top marginal individual income tax rate to 4.58% for 2026 under SB 392 (signed March 31, 2026, retroactive to January 1) — a 5% across-the-board reduction continuing the post-HB 2526 (2023) glidepath that brought the rate down from 6.5% (2022) → 5.12% (2023) → 4.82% (2025) → 4.58% (2026). WV has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. The DISTINCTIVE recent WV change is HB 4011 of 2024 (effective June 7, 2024): healthcare practitioner non-competes are now VOIDED — physicians, PAs, APRNs, optometrists, podiatrists, and dentists cannot be restricted from providing care within the same hospital-system region after termination.
WI
50+ employees wisconsin mini-warn employer threshold
Wisconsin has THREE distinctive features for severance. (1) State mini-WARN: the Wisconsin Business Closing and Mass Layoff Law, Wis. Stat. § 109.07, covers employers of 50+ in Wisconsin and requires 60 days advance notice before a business closing affecting 25+ employees OR a mass layoff of 25% of workforce / 25 employees (whichever greater) / 500+ regardless of percentage. (2) Top marginal income tax of 7.65% under Wis. Stat. § 71.06 (4-bracket graduated: 3.50% / 4.40% / 5.30% / 7.65%; middle brackets reduced under 2023 Wis. Act 19). (3) Strict-construction non-competes under Wis. Stat. § 103.465 — Wisconsin courts CANNOT blue-pencil overbroad covenants; if any portion is unreasonable, the ENTIRE covenant is unenforceable (Star Direct v. Dal Pra, 2009 WI 76).
WY
0% wyoming state income tax on wages
Wyoming has NO state income tax on wages — Wyoming has never adopted a broad-based individual income tax, and the Wyoming Constitution at Art. 15, Sec. 18 (added by 1974 referendum) limits the legislature's ability to impose one. Severance is subject only to federal supplemental withholding (22% / 37% above $1M cumulative) and FICA. Wyoming also has no state mini-WARN — federal WARN (29 U.S.C. §§ 2101–2109) controls. UI severance offset under W.S. § 27-3-313. Non-competes are common-law reasonableness under Hopper v. All Pet Animal Clinic, 861 P.2d 531 (Wyo. 1993).