Texas’ unemployment system is confusing and frustrating. Here’s how to navigate it.
People across Texas are struggling to navigate a maze-like system to get unemployment benefits. Gov. Greg Abbott announced Texas was opting out of some federal assistance programs, which ended June 26. Here are the answers to the most common questions about getting benefits from the Texas Workforce Commission.
In mid-May, Gov. Greg Abbott said Texas will opt out of the two main programs authorized by the federal CARES Act that significantly expanded unemployment assistance. Congress passed a final version of that new $1.9 trillion coronavirus relief bill March 10, and President Joe Biden signed it into law the next day. That federal bill extended the expiration for some unemployment benefits as late as September.
Now, as a result of Abbott’s decision, Texans can no longerclaim pandemic jobless benefits as of June 26, after a year in whichmany people struggledto navigate the TWC’s already-complicated unemployment system, made harder to understand by the changing rules and programs that came with COVID-19. The end of the economic safety net comes as others are also disappearing — Texans’ electricity can be cut for nonpayment starting on the last day of June. For renters, evictions will begin to proceed normally again at the end of July.
We’ve found that easily accessible, up-to-date information about unemployment benefits can be hard to find in one place.
In this guide, you’ll find answers to the following questions:
How did the March 2021 coronavirus relief package affect my benefits?
A $1.9 trillion coronavirus relief package signed into law March 11 extended two pandemic unemployment programs authorized by the CARES Act into the first week of September. Lawmakers also extended a federal benefit that added an extra $300 a week to all unemployment claims. But jobless Texans only had access to these benefits through June 26, after Gov. Greg Abbott said in mid-May that Texas would opt out of the federal assistance.
The legislative package also included a tax break for anybody who received $10,000 in unemployment benefits during the pandemic.
You can no longer claim pandemic unemployment benefits
Self-employed workers, as well as traditional claimants who have exhausted their regular unemployment claims, had been eligible for benefits under the extensions.
Pandemic Unemployment Assistance, the program that extends jobless assistance to gig workers, self-employed people and others who aren’t traditionally covered by unemployment insurance, as well as Pandemic Emergency Unemployment Compensation, a federal extension of jobless benefits for people who have exhausted their regular unemployment claims, were both available to eligible claimants through June 26. The federal legislation extended these benefits through Sept. 4, but Abbott hurried the cutoff date for Texas.
NOTE: The Texas Workforce Commission said that Texans who have been receiving unemployment payments “should continue requesting payments. Most Texans will be automatically enrolled. For those who are not, TWC will send them instructions.”
Extra $300 per week ended June 26
Everyone who was eligible for unemployment benefits will no longer receive an extra $300 per week, which was availableunder the Federal Pandemic Unemployment Compensation program.
Some self-employed workers who also earn W-2 wages stop receiving additional boost
If you earn more than $5,000 a year from self-employment, but you also have a side job working for an employer, you may be stuck receiving lower state unemployment benefits (based on your employer wages) than you would receive on Pandemic Unemployment Assistance (based on your self-employment income).
A provision in Congress’s stimulus deal in March offered an additional $100 per week to workers who fall into this category.
Individual states, however, have the option to opt out of this program. Texas originally opted in, but Abbott then pulled Texas out of the program. This $100 supplement expired June 26, after it was originally extended through Sept. 4.
If you received $10,000 in unemployment benefits during the pandemic, you should have received a tax break
The Internal Revenue Service said it will review all tax returns filed before the March legislation was signed into law. The agency "is reviewing those tax returns to determine the correct taxable amount of unemployment compensation and tax. This could result in a refund, a reduced balance due or no changes to tax (no refund due nor amount owed)," the IRS said.
Refund amounts will vary, and not all adjustments will result in a refund, the IRS said. Unemployment aid is taxable income.
The IRS advises taxpayers who have not yet filed a tax return to follow the guidance for Forms 1040 and 1040-SR, which details how to exclude unemployment compensation.
The deadline for Texans to file their 2020 taxes was June 15, a deadline that was extended due to February's deadly winter storm.
Do I qualify for unemployment benefits?
Traditional unemployment benefits in Texas are typically available to people who have been laid off from their jobs or who have lost hours or wages for reasons that aren’t tied to employee misconduct. They are funded through employer taxes and meant to provide a temporary, partial income replacement for people who meet certain qualifications.
Melissa Jacobs, an attorney with Texas RioGrande Legal Aid, says generally, “people who are separated from work through no fault of their own” qualify for some type of assistance.
State unemployment systems across the country have changed, however, during the coronavirus pandemic. The CARES Act, a federal law passed in March, has temporarily made many more workers who’ve been affected by COVID-19 eligible for unemployment assistance than would be otherwise under Texas law. Those workers include independent contractors, gig workers, people who have already used up their unemployment benefits and people who didn’t earn enough in the past to qualify for regular unemployment. TRLA offers a detailed breakdown of who can access unemployment benefits during the pandemic here.
What kind of benefits am I eligible for?
Regular unemployment benefits:
This traditional unemployment program provides assistance for up to 26 weeks per year. To be eligible for regular benefits, you must:
Have made enough money during what’s called a base period. Your base period is a window of time before you lose employment or hours.
Be either unemployed or working reduced hours through no fault of your own. This includes layoffs, reductions in hours or wages not related to misconduct, being fired for reasons other than misconduct or quitting with good cause related to work, such as unsafe working conditions. According to the TWC, most people who quit do not qualify for regular unemployment benefits.
Once you exhaust your claim, you may be eligible for one or more of the federal pandemic assistance programs, as well as a state extension program. The TWC should automatically consider you for these programs and enroll you if you qualify. Read more about extensions here.
NOTE: You will be screened for regular unemployment before you are screened for pandemic-related benefits. You may get a denial letter for traditional benefits but still qualify for other assistance programs.
Pandemic Unemployment Assistance (PUA):
If you applied for unemployment and the workforce commission finds that you do not qualify for regular benefits, the agency should haveautomatically considered you for Pandemic Unemployment Assistance and enroll you if you are found eligible. You should not need to file a separate claim.
You lost work because of a layoff or permanent, indefinite or temporary business closure caused by COVID-19.
You are self-employed and your business has closed permanently, indefinitely or temporarily, or you are self-employed and cannot find work because of COVID-19 (for example, a personal trainer who can’t see clients in person, or a ride-share driver and fewer people are requesting your services).
You had your work hours reduced because of COVID-19.
You are unable to work (whether you were employed by someone else or self-employed) because you are caring for a child whose school or child care facility closed because of COVID-19.
You are fired or leave work to comply with a mandatory order issued under a disaster declaration.
You are unable to work because of a government-ordered quarantine or a doctor advised you to self-quarantine over COVID-19 concerns.
You are unable to work because you or someone else in your household has been diagnosed with COVID-19, or you are caring for a family member who has been diagnosed with COVID-19.
You are unable to work because you have COVID-19 symptoms and are seeking a diagnosis.
Texas provided additional benefits through June 26 to people who have exhausted their regular state benefits. This is a new program under the CARES Act that was extended by Congress. If you were already receiving unemployment assistance and used up your 26 weeks of benefits before the coronavirus pandemic, you may have been eligible for more assistance under this program.
Your original unemployment claim was dated on or after July 8, 2018.
You exhausted all regular unemployment benefits you were entitled to.
You are not eligible for benefits in any other state or territory.
You will run out of your current benefits at any point before Dec. 20, 2020.
You are not receiving compensation under the unemployment laws of Canada.
You are able to work and available for work.
There are so many terms and acronyms. What do they all mean?
Applying for unemployment aid in Texas can be like learning to read another language.
Are you on a TUC? Is it EB or HUP? Have you logged onto UBS and checked your correspondence inbox or called the Tele-Serv to find out? We have compiled a glossary of acronyms and terms to help you out, which can be found here.
I can’t get through to the TWC. How do I get in touch?
Use the internet when possible. Melissa Jacobs, an attorney with Texas RioGrande Legal Aid, recommends filing your claim online and getting in the habit of checking your account regularly to stay on top of notices from the TWC. The TWC offers instructions on how to:
Call. If you don’t have access to the internet or need to talk to someone, you can try calling 800-939-6631, the TWC’s main line for unemployment claims. But be prepared to wait anywhere from a few minutes to several hours. Jacobs recommends calling your local workforce office first and asking to be put into the hold queue for unemployment benefits if the call taker can’t help you. Some Texans, like Ozona resident Sean Sanchez, 52, have had luck in recent months calling TWC’s main line first thing in the morning. “Start calling at 7 a.m. on the dot,” Sanchez advised.
Request a call through the live chat function on the TWC website. At the bottom of the homepage, a “virtual assistant” can help answer common questions about TWC services. Check back in if you don’t receive a call within a couple of days. Some people say they never heard back. NOTE: If you request a call, the TWC may try to get in touch with you from a number you don’t recognize or that appears on your phone as “unknown.” The agency also recommends making sure your voicemail inbox is not full.
Search for specialized emails and phone numbers online. Some Texans said they’ve successfully connected with the TWC through emailing or calling specific employees at the agency. Some have found contacts in Facebook groups and on Reddit.
Email the unemployment ombudsman. If you have an issue with your claim that you haven’t been able to resolve, the TWC recommends sending an email to the agency’s unemployment insurance ombudsman. They say you should not attach documentation unless it is requested, but that you should send your name and phone number. Email: firstname.lastname@example.org.
I did not apply for benefits until a week or more after I lost my job. Do I still qualify?
Possibly. You are eligible to receive unemployment benefits starting from the time you lost your job, but if you aren’t able to immediately reach the TWC, you can request “backdated benefits” to ensure you receive benefits beginning with the week you lost your job.
If you are given the option through Tele-Serv or through your online account to request benefit payments for backdated weeks, you must request them at that time, the TWC says.
If you are not given the option to request backdated benefits, you’ll need to call the TWC,request a callback or email the agency requesting backdated payments starting with the date you lost your job. Email: email@example.com.
Provide the exact date you lost your job. Texans who have had issues with this part of the process say that the TWC will look for “any T that is not crossed, so pay close attention to what you submit and have personal documentation to back it all up if they ask for it later,” said Angeline Stevens, who teaches welding in Dallas and has endured the unemployment process.
What do I need to know about work search requirements?
As of Nov. 1, the TWC has reinstated work search requirements. This means most people must take steps to return to work while receiving unemployment benefits.
If you are on regular unemployment, or were on Pandemic Unemployment Assistance (PUA) or Pandemic Emergency Unemployment Compensation (PEUC):
Your search activities can include registering on an online job board — such as workintexas.com — a job interview, attending a virtual networking event or other activities.
The TWC will not ask you for documentation of your work search activities every time you request payment. Instead, you will check a box that confirms you performed a search. Someone may, however, randomly ask you to prove your work search activities. Keeping a log of your searches for your own records is a good idea. Here is a log template from the TWC.
You must document your work search activities using the TWC’s EB Search Log and submit it within seven days of each payment request you make. The workforce commission should send a blank EB Search Log to your correspondence inbox — the online mail portal tied to your TWC account — or to your physical mailbox. You can submit the documentation online or by mail or fax using the address or fax number listed on the form.
How do I do a work search if I’m self-employed?
If you intend to reopen your business, you do not need to search for new employment. Instead, you should take steps to reopen and report to the TWC how many hours per week you’ve spent trying to rebuild your business. The TWC has not specified a minimum number of required hours.
Steps to reopen that are accepted by the TWC include activities like contacting past clients, submitting a bid on a contract or posting on social media about your reopening plans. Read more about this on TWC’s website.
If you do not plan to reopen your business, you must perform work searches as outlined here.
Is anyone exempt from work searches?
You may be exempt from work searches if you meet any of the following criteria. You must also have your exemption approved by the Unemployment Insurance Division of the TWC.
You are on a temporary layoff or furlough with a definite return-to-work date.
You are an active member in good standing of a union with a nondiscriminatory hiring hall.
You are in a TWC-approved training program that includes work search exemption.
You are not exempt from work searches if you contract COVID-19 or are awaiting a diagnosis. “Work search can be done in most cases safely from home,” TWC spokesperson James Bernsen said.
How do I know what kind of unemployment aid I’m receiving?
You can log on to your online account with the TWC and visit your claim and payment status page. Here, under the claim information section, you will see your claim type listed as: Regular Unemployment Benefits, Disaster Unemployment Benefits (for now, this is the same as Pandemic Unemployment Assistance), or Temporary Unemployment Benefits (extensions).
If you are on an extension,it can be difficult to know which program you are enrolled in. Pandemic Emergency Unemployment Compensation and Extended Benefits are two active extension programs that are both referred to as Temporary Unemployment Benefits on your claim and payment status page.
To find out which extension you are on, look through the documentation in your correspondence inbox online or mailed to you by TWC. You should have paperwork that states which extension program you are on.
Another way to tell: Log on to your payment status page and click “select another claim to view” directly above the Claim Information header. If you see two claims listed as Temporary Unemployment Benefits, you are likely on EB. That’s because most people must exhaust PEUC before they are put onto an EB claim. You can read more about the differences between the two extensions here.
What can I do if my unemployment claim is denied?
If you disagree with a decision the TWC has made about your unemployment claim, you can file an appeal.
Attorneys with Texas RioGrande Legal Aid recommend to their clients that they continue to request benefits while appealing a denial. That way, if they win, they get payments for the weeks they requested during that time.
How do I file an appeal?
According to the TWC, you must appeal in writing within 14 calendar days of when the agency sent your determination letter. You can send your appeal by mail, by fax or online, or submit it in person at your local workforce commission office. The letter should include the reason for your appeal. If you submit online, it’s a good idea to print out or take a screenshot of the confirmation page as proof you sent it.
The TWC says on its website that you should include the following in your appeal letter:
Your name, address and Social Security number.
The date the TWC mailed you the decision you want to appeal.
A copy of the determination notice, if possible.
Any dates you will not be available for a hearing.
Attorneys with Texas RioGrande Legal Aid also encourage their clients to include:
Your request for translators, if needed, and the language you require.
Your request for special services, if needed, such as an interpreter for hearing loss.
(If you need to have your appeal hearing in a language other than English, or if one of your witnesses needs an interpreter, you should say so in the appeal and state which language you or your witness speaks.)
Important: If you miss the appeal deadline, your appeal letter must explain in detail why you submitted late.
What happens during the appeals hearing?
Upon receiving the appeal, the agency sends a notice of a telephone hearing. That lists your hearing officer — who amounts to the judge in the case. Legal representation is optional. You can have someone represent you, but the TWC does not provide a lawyer. You also may call witnesses, and your most recent employer may also appeal and participate in the hearing. The hearing officer has your documents in front of them and asks a series of questions, and you are provided an opportunity to lay out your case. Ahead of your hearing, the TWC recommends gathering the following materials to have on hand:
Letters and memos.
Maps, charts and diagrams.
Angeline Stevens, the welding teacher in Dallas, appealed a TWC finding. She recommends having on hand a history of your pay stubs, termination letters and/or any written correspondence you’ve had with your previous employer.
Any of the relevant documents you want to present during the hearing must be provided to the hearing officer listed on your appeal hearing notice. The agency recommends sending relevant documents as far in advance as possible. You should not include documents already included in the hearing information packet.
If I disagree with the decision TWC makes about my appeal, do I have any other options?
I’ve been told I owe money to the state. What do I do?
Overpayments happen when the workforce commission pays you unemployment benefits that you were not actually entitled to.
In some circumstances, you may be overpaid if you underreport your earnings or fail to include income like severance or time-off payouts. In others, you may be overpaid if you gave incorrect information about your job loss that results in your eligibility for a certain program being overturned. Read more about reasons for overpayment here.
If you disagree that you were overpaid, as many Texans have, you can submit an appeal with the TWC. The new coronavirus relief package says the TWC may waive a repayment if the overpayments the agency sent to you were not your fault, or if the repayment would be “contrary to equity and good conscience.” It is unclear how the agency determines equity and good conscience. The Texas Tribune has requested clarification.
I’ve started working again but not full time. Can I continue getting unemployment benefits?
If you are working fewer hours than you were prior to losing employment and applying for benefits, you may still qualify for partial unemployment. Attorneys with Texas RioGrande Legal Aid tell clients in this situation to continue requesting payments like normal, including their income and hours worked.
I returned to work after filing for benefits, but I’m out of work again. What do I do?
According to the workforce commission, if three weeks or less have passed since you last requested payment, you should go ahead and request payment again as normal. You should report any hours you worked or income you received during the time period for which you request unemployment benefits.
If it has been more than three weeks since you last requested payment, you should reapply for benefits. To help the TWC activate your claim quickly, the agency says, select layoff as the reason you lost your job. Choose layoff even if you were furloughed or the business where you were most recently working closed.
What happens when I run out of my benefits?
You may not qualify for more benefits.
If you have exhausted your regular unemployment claim, the TWC will no longer consider you for an extension. (However, if you believe you qualify for an extension and you are not enrolled within three to four days of exhausting your claim, you can contact the workforce commission.) There are two temporary extension programs currently active in Texas that most people* on regular unemployment qualify for: Pandemic Emergency Unemployment Compensation, or PEUC, and Extended Benefits, or EB.
*If you are eligible for unemployment in another state because you also earned wages there, you may have to exhaust your regular benefits in that state before qualifying for EB in Texas.
If you have exhausted your Pandemic Unemployment Assistance benefits and have not recently been on regular unemployment, you don’t qualify for any kind of extension.
Under federal legislation, Texas provided additional weeks of federally funded PEUC benefits to people who exhaust their regular state benefits. This program expired on June 26.
Extended Benefits (EB)
EB was a state program that was triggered by Texas’ high unemployment rate in June 2020. It also extended your benefits for up to 13 additional weeks. Before being considered for EB, you had to first exhaust the standard 26 weeks of regular unemployment, plus the additional 24-week extension under PEUC.
While on an extension, will I get the same amount of money each week as I did while on regular benefits?
Yes. The extension extends the amount of time you can receive the benefit. It does not affect the amount you receive.
How do I know if I’m on an extension?
If you’re currently on an extension, your online account will indicate that you claim “Temporary Unemployment Benefits.” To check, visit your claim and payment status page and look directly beneath the Claim Information header. If your claim type is still listed as “Regular Unemployment Benefits,” click the link directly above the Claim Information header that says “Select another claim to view.” This should bring up any other claims you have, including any possible extensions.
If you don’t have access to the internet, check the documentation sent to you in the mail by the TWC.
I feel like I’ve tried everything and I still can’t get my claim sorted out. What can I do?
If all else fails: Ask again, but louder.
Houston resident Kimberly Lantz suggests calling your local representative’s office. After she was laid off from her job as a hotel sales manager in March, she filed for unemployment right away, but the TWC denied her claim for regular benefits because of an issue with her recent work history.
For the next seven months, she would try in bursts to get in touch with the workforce commission to find out whether she qualified for pandemic assistance. But she could never get through. It wasn’t until she called state Rep. Ed Thompson’s office in October to discuss her situation that she got an answer from the TWC. Within a week, $20,000 of backpay was deposited into her account.
What other resources can help me through this process?
Here are other places Texans have gone to get their questions answered throughout the process of applying for assistance during the pandemic:
Texas RioGrande Legal Aid provides free civil legal services to low-income Texans, including legal assistance navigating unemployment claims. The organization can be reached at 888-988-9996.
Online communities. Texans have created social networks to support and help one another. The TWC warns to be aware of possible scammers that could be lurking in these online communities.
Facebook has been a financial supporter of The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune's journalism. Find a complete list of them here.
Quality journalism doesn't come free
Perhaps it goes without saying — but producing quality journalism isn't cheap. At a time when newsroom resources and revenue across the country are declining, The Texas Tribune remains committed to sustaining our mission: creating a more engaged and informed Texas with every story we cover, every event we convene and every newsletter we send. As a nonprofit newsroom, we rely on members to help keep our stories free and our events open to the public. Do you value our journalism? Show us with your support.