> collect severance and unemployment --- I was not aware this is law in California,
Unemployment benefits in California are capped at $450/week, and you only get 26 weeks of it. It's helpful, but doesn't even cover housing costs for many individuals, let alone for families.
I don't think there's a state law requiring severance. It's often offered by the employer if the terminated employee agrees to sign an NDA.
The California WARN act effectively requires 2 months severance for large layoffs at large companies (or 2 months notice, but companies almost always prefer severance).