TWC evaluates unemployment benefits claims based on the applicant's:
- Past wages
- Type of job separation
- Ongoing eligibility requirements
An individual must meet all requirements in each of these three areas to qualify for unemployment benefits. Unemployment Benefits for job seekers and employees provides information for claimants on eligibility requirements.
Past Wages
We use the taxable wages each employer reported paying during the person's base period to calculate benefits. Each employer who paid wages during the base period may be charged for the claim. Employer Unemployment Benefit Chargebacks explains how employers are charged for unemployment benefits.
Base Period
The base period is the first four of the last five completed calendar quarters before the effective date of the initial claim. The effective date is the Sunday of the week in which the person applies for unemployment benefits.
Types of Job Separation
To be eligible for benefits based on the job separation, the person must be either unemployed or working reduced hours through no fault of their own. Examples include layoff, reduction in hours or wages not related to misconduct, being fired for reasons other than misconduct, or quitting with good cause related to work. If you paid wages to the individual during the base period, you would be charged if they received benefits.
Laid Off
Layoffs are due to lack of work, not work performance, so with a layoff the individual may be eligible for benefits. For example, you have no more work available, eliminated the employee's position or closed the business.
Working Reduced Hours
If the individual is working but you reduced their hours, they may be eligible for benefits. The reduction in hours must not be the result of a disciplinary action or because of the person's request.
Fired
If you ended the individual's employment but he or she was not laid off as defined above, then the individual was fired. If you demanded their resignation, then we consider the individual fired.
A person may be eligible for benefits if they were fired for reasons other than misconduct. Examples of misconduct that could make them ineligible for benefits include violation of company policy, violation of law, neglect or mismanagement of a position, or failure to perform work adequately if capable of doing so.
Quit
If the individual chose to end their employment, then he or she quit. Most people who quit their jobs do not receive unemployment benefits. For example, if the person quit the job for personal reasons, such as to return to school full time or stay home with their children, we cannot pay benefits.
The individual may be eligible for benefits if they quit for one of the reasons listed below:
- Quit for good cause connected with the work, which means a work-related reason that would make a person who wants to remain employed leave employment. The individual should be able to present evidence that they tried to correct work-related problems before quitting.
Examples of quitting for a good work-related reason are well-documented instances of:
- Unsafe working conditions
- Significant changes in hiring agreement
- Not getting paid or difficulty getting paid
- Quit for a good reason not related to work, under limited circumstances. TWC may be able to protect your account from charge if the claimant quit for one of the reasons listed below. Examples include leaving work because of:
- A personal medical illness or injury that prevented the person from working
- Caring for a minor child who has a medical illness
- Caring for a terminally ill spouse
- Documented cases of family violence or stalking
- Moving with the person's military spouse
- Quit to move with the individual's spouse when the move is not part of a qualifying military permanent change of station (PCS). The person may be eligible for benefits but will be disqualified for 6 to 25 weeks, depending on the situation. The maximum benefit amount the person could be paid is also reduced by the number of disqualified weeks. TWC may be able to protect your account from charge if the claimant left work due to a PCS.
Labor Dispute
If an individual or their class of workers is financing, participating in or directly involved in a strike, we cannot pay the person benefits during the strike.
- Class of Worker: The grade or class of worker is based on the type of work the person performed. For example: If electricians are on strike and the person is an electrician then he or she can be considered the same grade or class of worker that is on strike and will benefit from the strike. If the person is in a supervisory, non-manual classification and electricians are on strike, then he or she would not be considered in the same grade or class as the electricians.
- Financing a Strike: Any payment such as union dues that are used to finance a strike or other payments made to a strike fund that assists striking members.
If the individual and their class of workers are not financing, participating in or directly involved in the strike, he or she may be eligible for benefits.
Disaster-Related Separation
TWC protects the employer's account from charge in approved Disaster Unemployment Assistance (DUA) cases. Individuals who lose their jobs or businesses as a direct result of a major disaster declared by the President of the United States may qualify for federal DUA. The person must exhaust regular unemployment benefits before applying for DUA. Applicants can learn more about DUA claims at Disaster Unemployment Assistance.
Ongoing Eligibility Requirements
To receive payments, claimants must meet both the initial requirements for establishing a payable unemployment benefits claim and additional ongoing requirements. Ongoing Eligibility Requirements for Receiving Unemployment Benefits provides details for job seekers and employees.
Ending a Disqualification
A claimant who is disqualified from receiving benefits may be able to end the disqualification through work or earnings. The Learning the Result of Your Application for Benefits page for claimants provides information on how to end a disqualification.
Payment Requests
To request unemployment benefit payment, totally or partially unemployed claimants submit a payment request online or by phone every two weeks for the previous two-week period. When requesting payment, they answer several questions regarding their work and earnings and whether they met eligibility requirements during the claim period.
Reporting Work & Earnings
When making a payment request, claimants must report hours worked and gross earnings (before deductions) from any full-time, part-time or temporary work; net profit from self-employment; vacation or holiday pay; and commissions. Those earnings must be reported even though the claimant may not have yet received payment. There are no exceptions. TWC computes how much a claimant can earn before we deduct those earnings from their weekly benefit amount plus 25%. Claimants who earn more than their weekly benefit amount plus 25% cannot receive benefits for that week.