Can I file for summer unemployment with an old TWC overpayment debt?
I work for a company that's contracted by a charter school to provide support services during the school year. Now that summer break started, I'm temporarily out of work until classes resume in late August (about 10 weeks). My supervisor suggested filing for unemployment during this period since we're technically laid off for the summer. Here's my concern - I had to file for unemployment back in 2023 and ended up with an overpayment of around $2,100 that I haven't fully paid back yet. I still owe about $1,400 to TWC. Will this prevent me from filing a new claim? Or will they just take my new benefits to pay back the old debt? I need some income during these summer months, but I'm worried they'll deny me completely because of the old overpayment. Has anyone dealt with seasonal unemployment while still owing TWC money from a previous claim?
19 comments


Yara Sayegh
yea u can still file they'll just take some of ur benefits to pay back what u owe. i was in same boat last yr, they took like 25% of each payment til the old debt was covered. better than nothing tho right?
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Connor Murphy
•Thanks for sharing your experience! 25% doesn't sound too bad. Did they automatically set that up or did you have to contact them specifically to arrange the repayment plan?
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NebulaNova
You can absolutely file a new claim while having an outstanding overpayment. TWC will generally recoup the overpayment by withholding a percentage of your new benefits (usually between 25-50%, depending on the circumstances of your original overpayment). Since you work for a contracted school service, make sure you select "School Employee" when asked about your employment type during the application. There are special rules for school employees, but since you're working for a contractor rather than directly for the school, you should qualify as long as you don't have "reasonable assurance" of returning to work after the break. Also, be prepared to complete your three required work searches each week, even though you expect to return to your job when school starts again. TWC doesn't waive this requirement for seasonal layoffs.
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Connor Murphy
•Thank you for the detailed explanation! I wasn't aware of the "School Employee" designation - that's really helpful. And good reminder about the work search requirements - I'll definitely keep track of those activities.
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Keisha Williams
•Actually the work search requirements might be different depending on your county. Some rural counties only require 1 work search per week while urban areas require 3. Check the TWC website for your specific county's requirements!
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Paolo Conti
I HATE how TWC handles school contractor situations! Last year my sister-in-law was in the exact same situation and they initially DENIED her claim saying she had "reasonable assurance" of returning to work even though she wasn't directly employed by the school!!! Had to appeal and wait FIVE WEEKS before getting any money. The system is designed to make you give up! And yes, they'll take money from your new claim to pay the old debt. They took 50% from my sister-in-law's payments which was totally unfair since she had kids to feed. Good luck getting through to anyone on the phone to negotiate a lower percentage too - IMPOSSIBLE to reach anyone!!!
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Amina Diallo
•I had a similar experience with the "reasonable assurance" issue, but after submitting documentation proving I was a contractor and not a direct school employee, my appeal was approved within 2 weeks. The key is providing a copy of your contract showing you're employed by the contracting company, not the school itself. This makes a huge difference in how TWC processes these seasonal claims.
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Paolo Conti
•Yeah well my sister-in-law DID submit her contract and it STILL took 5 weeks! Some people get lucky with quick appeals but most don't. The system is broken!!
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Oliver Schulz
I think you'll be OK filing, but TWC might take more than 25% like someone mentioned. When I had an overpayment from 2022, they took 50% of each payment until my debt was paid. Just be prepared for that possibility. BTW, does anyone know if summer school positions count as suitable work for people in your situation? I'm wondering if turning down summer school work (if it's offered) would affect the claim?
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NebulaNova
•Great question about summer school positions. Yes, if you're offered summer school work through your contracting company and decline it, TWC could potentially disqualify you for refusing suitable work. However, if the summer position offers significantly reduced hours or substantially different job duties, you might have grounds to decline without penalty. It's case-by-case.
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Natasha Kuznetsova
When I had trouble with a similar situation last year (seasonal work + previous overpayment), I wasted WEEKS trying to get through to TWC on the phone. Busy signals, disconnections, automated messages saying call volume too high. Super frustrating. I finally used a service called Claimyr (claimyr.com) that got me connected to an actual TWC agent in about 20 minutes. They have a demo video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh The agent was able to tell me exactly how much would be deducted from my benefits to repay the overpayment AND helped me understand how to properly document my seasonal work situation. Saved me so much stress.
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Connor Murphy
•I've never heard of that service before! I'll definitely look into it if I run into problems reaching someone at TWC. The phone system is absolutely terrible.
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Oliver Schulz
•does that service cost money? seems weird to pay to talk to unemployment when its supposed to be a free govt service
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Amina Diallo
Regarding your overpayment: You should know that how much they recoup depends on whether your previous overpayment was classified as fraud or non-fraud. For non-fraud overpayments (honest mistakes), they typically take 25-30%. For fraud-classified overpayments, they can take up to 100% until it's paid off. You can check which type you have by logging into your TWC account and looking at the determination letter for the overpayment. If it doesn't mention fraud, you're likely in the non-fraud category. Also, since you work for a contractor rather than directly for the school, make sure your employer reports your separation correctly as a "temporary layoff" rather than a "school employee with reasonable assurance of return." This distinction is crucial for summer unemployment eligibility.
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Connor Murphy
•Thank you for explaining the difference between fraud and non-fraud overpayments. Mine was definitely non-fraud - I accidentally reported my hours incorrectly for a part-time job I had while receiving benefits. I'll check with my employer about how they're reporting the summer separation.
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Keisha Williams
i had something similar happen when i was working for a school cafeteria company! filed in summer and got approved but then TWC sent me a letter saying i wasnt eligible and had to pay everything back! found out later my boss checked the wrong box about me having "reasonable assurance" of going back in fall. make sure ur boss fills out their paperwork right!!!
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Paolo Conti
•THIS!!! The employer paperwork is the biggest issue with school-related unemployment! They almost ALWAYS check the wrong boxes which causes denial and then YOU have to fight it for weeks. So frustrating.
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Connor Murphy
Thanks everyone for all the advice and sharing your experiences! I called my HR department today and they confirmed they'll be reporting our summer break as a temporary layoff, and they provided me documentation showing I'm employed by the contractor, not directly by the school. I also checked my TWC account and confirmed my previous overpayment was classified as non-fraud, so hopefully they'll only take 25-30% of my benefits. I'm going to file my claim tomorrow and make sure I select all the right options regarding my school contractor status. I'll update this thread once I find out if my claim is approved and how they handle the overpayment situation. Fingers crossed!
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NebulaNova
•Sounds like you're taking all the right steps! Good job getting that documentation from your HR department - that will be extremely helpful if there are any issues with your claim. Best of luck!
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