If the law required severance the law is also pretty likely to make requirements of the employee as well so things will still be equal - when I say pretty likely I mean in every case I have ever seen.

Yes, I would openly encourage different types of work contracts in California / the US. I'd commit, for example, to 1-2 year auto-renewing contracts. Probably would need a few conditions:

* If I am terminated without breach of contract I still will receive full compensation (at least for some months).

* Contract may not be broken related to any unexpected health issues.

* No arbitration requirement if one side accuses breach of contract.

Of course this would benefit me more than the employer :-)