PLayer-FL: A Principled Approach to Personalized Layer-wise Cross-Silo Federated Learning

Federated learning (FL) with non-IID data often degrades client performance below local training baselines. Partial FL addresses this by federating only early layers that learn transferable features, but existing methods rely on ad-hoc, architecture-specific heuristics. We first conduct a systematic analysis of layer-wise generalization dynamics in FL, revealing an early-emerging transition between generalizable (safe-to-federate) and task-specific (should-remain-local) layers. Building on this, we introduce Principled Layer-wise Federated Learning (PLayer-FL), which aims to deliver the benefits of federation more robustly. PLayer-FL computes a novel federation-sensitivity metric efficiently after a single training epoch to choose the optimal split point for a given task. Inspired by model pruning, the metric quantifies each layer’s robustness to aggregation and highlights where federation shifts from beneficial to detrimental. We show that this metric correlates strongly with established generalization measures across diverse architectures. Crucially, experiments demonstrate that PLayer-FL achieves consistently competitive performance across a wide range of tasks while distributing gains more equitably and reducing client-side regressions relative to baselines.