We present a new form of intermittency, Lévy on-off intermittency, which arises from multiplicative α-stable white noise close to an instability threshold. We study this problem in the linear and nonlinear regimes, both theoretically and numerically, for the case of a pitchfork bifurcation with fluctuating growth rate. We compute the stationary distribution analytically and numerically from the associated fractional Fokker-Planck equation in the Stratonovich interpretation. We characterize the system in the parameter space (α, β) of the noise, with stability parameter α ∈ (0, 2) and skewness parameter β ∈ [−1, 1]. Five regimes are identified in this parameter space, in addition to the well-studied Gaussian case α = 2. Three regimes are located at 1 < α < 2, where the noise has finite mean but infinite variance. They are differentiated by β and all display a critical transition at the deterministic instability threshold, with on-off intermittency close to onset. Critical exponents are computed from the stationary distribution. Each regime is characterised by a specific form of the density and specific critical exponents, which differ starkly from the Gaussian case. A finite or infinite number of integer-order moments may converge, depending on parameters. Two more regimes are found at 0 < α ≤ 1. There, the mean of the noise diverges, and no critical transition occurs. In one case the origin is always unstable, independently of the distance µ from the deterministic threshold. In the other case, the origin is conversely always stable, independently of µ. We thus demonstrate that an instability subject to non-equilibrium, power-law-distributed fluctuations can display substantially different properties than for Gaussian thermal fluctuations, in terms of statistics and critical behavior.