West Virginia Severance — 4.58% Top Rate (SB 392), HB 4011 Healthcare Non-Compete, 2026

West Virginia WARN: what applies#

West Virginia has no state-level mini-WARN notice statute. The operative layoff-notice regime for West Virginia private employers is federal WARN (29 U.S.C. §§ 2101–2109): employers with 100 or more full-time employees must give 60 days advance written notice for a mass layoff (50+ affected at a single site of employment that constitutes at least 33% of the active workforce, or 500+ regardless of percentage) or a plant closing. Notice must go to affected employees (or their representatives), the WorkForce West Virginia Rapid Response unit, and the chief elected official of the local government. Liability for non-compliance is back pay and benefits for each day notice was not given, up to 60 days, plus a civil penalty of up to $500 per day payable to the local government. West Virginia adds no shorter notice, no lower employer-size trigger, and no statutory severance mandate beyond federal WARN.

How severance is taxed in West Virginia#

West Virginia's individual income tax rates have been reduced multiple times since 2023. Under HB 2526 of 2023, the top marginal rate was cut from 6.5% to 5.12% effective January 1, 2023 (a 21.25% reduction phased in across all brackets). Subsequent legislation continued the reductions: by 2025 the top rate had reached 4.82%. In March 2026, Governor Morrissey signed SB 392, enacting a further 5% across-the-board reduction effective January 1, 2026 (signed March 31, 2026 with the new tables effective June 12, 2026, retroactive to January 1). The current 2026 bracket structure is: 2.11% (up to $10,000), 2.81% ($10,001–$25,000), 3.16% ($25,001–$40,000), 4.22% ($40,001–$60,000), and 4.58% top marginal rate on taxable income above $60,000 (single, joint, or head of household; married-filing-separately brackets are halved). Because the top bracket starts at $60,000, severance-recipient earners commonly fall into the 4.58% top bracket; lower-income recipients may be in the 4.22% or 3.16% bracket. West Virginia does NOT publish a separate flat supplemental withholding rate; the 2026 IT-100.2.A and IT-100.2.B Withholding Tables direct employers to apply the graduated tables to all wages including supplemental wages, which produces an effective ~4.58% rate for top-bracket severance-recipient earners. On top of West Virginia state withholding, severance is subject to the federal 22% supplemental rate (37% on cumulative amounts above $1,000,000 in a calendar year) and FICA (Social Security 6.2% to the wage base, Medicare 1.45% plus 0.9% additional Medicare on wages above $200,000 single / $250,000 MFJ).

Calculate your situation#

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FAQ#

Does West Virginia require severance pay?

No West Virginia statute requires private employers to pay severance. West Virginia has no mini-WARN that would mandate pay-in-lieu of notice. The only layoff-notice regime that carries teeth in West Virginia is federal WARN (29 U.S.C. §§ 2101–2109), which requires 60 days advance notice (or back pay for missed days) at employers of 100+ for covered mass layoffs and plant closings — but WARN mandates notice, not severance. Severance is therefore employer-discretionary in West Virginia unless your employment agreement, written severance plan, or company handbook makes it mandatory. West Virginia is an at-will employment state.

How is severance taxed in West Virginia?

West Virginia's individual income tax has been on a multi-year glidepath since HB 2526 of 2023 (which cut the top rate from 6.5% to 5.12% effective January 1, 2023). Subsequent reductions brought the rate to 4.82% by 2025, and SB 392 (signed March 31, 2026) enacted a further 5% across-the-board cut effective January 1, 2026 — bringing the top marginal rate to 4.58%. The current 2026 bracket structure is 2.11% / 2.81% / 3.16% / 4.22% / 4.58%, with the top 4.58% bracket starting at $60,000 (single, joint, head of household; married-filing-separately brackets halved). Severance-recipient earners commonly fall in the top 4.58% bracket. West Virginia does NOT publish a separate flat supplemental withholding rate; the 2026 IT-100.2.A and IT-100.2.B Withholding Tables direct employers to apply the graduated tables to all wages including supplemental wages, producing an effective ~4.58% rate for top-bracket earners. On top of West Virginia state withholding, severance is subject to the federal 22% supplemental rate (37% on cumulative amounts above $1,000,000 in a calendar year) and FICA (Social Security 6.2% to the wage base, Medicare 1.45% plus 0.9% additional Medicare on wages above $200,000 single / $250,000 MFJ). Year-end West Virginia liability is reconciled on Form IT-140.

Does West Virginia have a mini-WARN statute?

No. West Virginia has no state-level mini-WARN that imposes employer notice obligations independent of federal WARN. The operative regime is federal WARN (29 U.S.C. §§ 2101–2109): 60 days advance notice at employers of 100+ for mass layoffs affecting 50+ at a single site that constitute at least 33% of the active workforce (or 500+ regardless of percentage). Notice goes to affected employees, the WorkForce West Virginia Rapid Response unit, and the chief elected local official. Federal WARN penalties: back pay and benefits for each day notice was not given (up to 60 days), plus a $500/day civil penalty payable to the local government. West Virginia adds no shorter notice, no lower employer-size trigger, and no statutory severance mandate.

Does OWBPA apply in West Virginia?

Yes. OWBPA is federal (29 U.S.C. § 626(f)) and applies in all states. If you are age 40 or older and your West Virginia employer asks you to sign a waiver of age-discrimination claims under the ADEA in your severance agreement, the waiver is enforceable only if you receive at least 21 days to consider the agreement (45 days for group exits — a 'reduction in force' or 'exit incentive program'), and 7 days after signing to revoke. Group exits additionally require disclosure of the ages and job titles of all selected and non-selected employees in the decisional unit. The West Virginia Human Rights Act (W. Va. Code § 5-11-1 et seq.) separately prohibits age discrimination (40+) by employers with 12 or more employees — a lower threshold than the federal ADEA's 20-employee minimum, so smaller West Virginia employers are still covered by state law. A release of state-law age claims under the WVHRA does not require OWBPA-compliant 21/45/7 procedures, but the federal ADEA release portion still does.

Can I collect West Virginia unemployment while receiving severance?

It depends on how the severance is structured. West Virginia's unemployment disqualification rules are primarily at W. Va. Code § 21A-6-3 (Disqualification for benefits). In practice, WorkForce West Virginia treats severance pay based on allocation: severance designated as 'wages in lieu of notice' or salary continuation tied to a specific notice period typically offsets UI benefits week-by-week during the allocated weeks; a lump-sum severance not designated to specific weeks is more likely to be allocated to the separation date. Practical takeaways: (a) file your WV UI claim with WorkForce West Virginia on or shortly after your last day worked at workforcewv.org to establish your benefit year; (b) fully disclose the severance amount, structure, and any employer designation when you apply and on weekly certifications — failure to report severance is fraud; (c) confirm the current West Virginia UI maximum weekly benefit amount with WorkForce West Virginia before relying on net-of-benefits figures.

Are non-competes enforceable in West Virginia after a layoff?

Often yes for non-healthcare workers, but NO for many healthcare practitioners under recent legislation. The MOST DISTINCTIVE West Virginia non-compete development is HB 4011 of 2024 (effective June 7, 2024), the West Virginia Non-Compete Reform Act, which specifically addresses healthcare-practitioner non-competes: HB 4011 prohibits the enforcement of non-compete agreements that restrict the right of a 'medical professional' (defined to include physicians, physician assistants, advanced practice registered nurses, optometrists, podiatrists, and dentists) to provide health care services after termination of an employment relationship. The Act voids healthcare non-competes that prevent practitioners from providing covered services within the same hospital system geographic region after termination, while preserving employer rights to enforce confidentiality and trade-secret protections. For non-healthcare workers, West Virginia non-compete law is otherwise common-law: a covenant must be (1) ancillary to a legitimate business interest (trade secrets, confidential information, customer relationships, goodwill), (2) reasonable in DURATION, (3) reasonable in GEOGRAPHIC scope, (4) reasonable in SCOPE of restricted activities, (5) supported by valuable consideration, and (6) not contrary to public policy — see Reddy v. Community Health Foundation, 171 W. Va. 368 (1982), and Voorhees v. Guyan Machinery Co., 191 W. Va. 450 (1994). West Virginia courts have judicial blue-pencil authority to narrow overbroad covenants. Practical takeaway: if you are a healthcare practitioner laid off, your non-compete is likely unenforceable under HB 4011 — the non-compete release clause in your severance offer may be releasing nothing of real value. For non-healthcare workers, common-law reasonableness applies; non-competes reasonable in time, place, and scope are generally enforceable. Have an attorney review duration, geography, and scope before signing.

How does the 2026 WV rate cut affect my severance check?

SB 392 (signed by Governor Morrissey on March 31, 2026) enacted a 5% across-the-board reduction in West Virginia individual income tax rates effective January 1, 2026, retroactive to the start of the year. For severance paid in 2026, the top marginal rate dropped from 4.82% (2025) to 4.58% (2026) — a 0.24-percentage-point reduction. For a $100,000 severance taxed at the top bracket, that's $240 less West Virginia tax compared to 2025. The reduction is part of a multi-year glidepath: 6.5% (2022) → 5.12% (2023, HB 2526) → 4.82% (2025) → 4.58% (2026, SB 392). The new tables (IT-100.2.A and IT-100.2.B) were posted by the WV State Tax Division and became effective June 12, 2026 — but the rate change applies retroactively to January 1, 2026, so any tax withheld during the early-2026 transition period at the higher 4.82% rate will be reconciled on the year-end Form IT-140. Verify the live WV State Tax Division 2026 IT-100 withholding tables before relying on net-of-tax figures.