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TWC benefits when employer isn't paying - can I file while still 'employed'?

My employer was supposed to pay us last Friday but no money showed up in anyone's account. Management only said they'd pay by end of business day Friday, which didn't happen. There's been zero official communication since - we're just hearing rumors that pay might come today. Word around the office is the company is having serious cash flow problems. I've got bills piling up and can't work for free! Can I file for TWC unemployment while technically still employed? Do I have to quit first? Or should I keep working without pay hoping they'll eventually catch up? Has anyone dealt with this situation before?

Jackie Martinez

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Yes, you can file for unemployment in Texas if your employer has reduced your hours OR failed to pay you for work performed. This is considered 'constructive discharge' or what TWC sometimes calls 'work stoppage.' You don't have to formally quit to qualify. Document everything - dates worked, hours, any communications about missed pay. File your initial claim online and explain the situation exactly as it happened. In the separation reason section, choose 'still working' but explain the non-payment issue in the details. You'll likely need to complete a fact-finding interview where you can explain more.

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Monique Byrd

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Thank you! I didn't realize I could file while still technically employed. Do you know if I should continue showing up to work during this process? I'm worried they'll claim I abandoned my job if I stop going in, but also can't afford to keep working without being paid.

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Lia Quinn

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OMG SAME THING happened at my last job!!! They kept saying the money was coming next week, next week, next week. I stayed like an idiot for THREE WHOLE PAYCHECKS before finally quitting. Never got fully paid back either. RUN NOW!!

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Monique Byrd

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Wow, three missed paychecks is crazy! Did you file for unemployment after you quit? Were you able to get benefits for the time you worked without pay?

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Haley Stokes

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yur actually in a good spot for unemployment. i went thru this last year and TWC counts not being paid as constructive discharge - u dont have to quit. just make sure to keep all emails texts about the missed pay. take screenshots of everything b4 u lose access to company systems.

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Asher Levin

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This isnt exactly right tho. You still have to show you tried to fix the situation with your employer before filing. I got denied because I didnt "make resonable efforts" to resolve the paycheck problem first. Need to have documentation that you asked about your pay multiple times.

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Serene Snow

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You should file a Wage Claim with TWC immediately, separate from any unemployment claim. Go to https://www.twc.texas.gov/jobseekers/how-submit-wage-claim-under-texas-payday-law and submit the form for unpaid wages. For the unemployment question - you're eligible under 'substantial reduction in pay' even while still employed, but documentation is crucial. Create a paper trail by emailing your supervisor about the missed pay rather than just relying on verbal communications or rumors. Print physical copies of any communications about payment issues. When you file your TWC claim, you'll need to explain that you're still technically employed but experiencing pay interruption.

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Monique Byrd

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I'll start the wage claim process today and email my boss asking for written confirmation about when we'll be paid. Should I mention in the email that I'm considering filing for unemployment, or would that just make things worse?

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When I was trying to get through to TWC about a similar situation last year, I kept getting busy signals for days. I finally used this service called Claimyr (claimyr.com) that got me through to an actual TWC agent in about 20 minutes. They have this demo video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh. It really helped me explain my complicated situation to a real person instead of just trying to explain it through the online portal where there's limited space. The agent was able to properly code my claim since my situation was unusual like yours.

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Lia Quinn

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Does this actually work?? I tried calling TWC like 50 times when my employer stopped paying me and never got through!! Spent hours listening to that stupid hold music 😡

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Yeah, it worked for me. The TWC agent I spoke with said they get thousands of calls a day and most people never get through. Having someone explain the rules to me directly made a huge difference in my case because I was still technically employed but not getting paid.

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Romeo Barrett

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Not legal advice but i think you should document EVERYTHING right now. take pics of ur schedule, any emails about pay, texts from managers, etc. My brother went thru this exact thing and the company tried to claim he abandoned his job when he was actually just refusing to work without pay (which is reasonable!!). The TWC has specific rules about this - non-payment is considered good cause to quit or reduce hours. Also file a wage complaint with the Texas Workforce Commission Payday Law division.

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Monique Byrd

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This is good advice - I'll start documenting everything today. Did your brother end up quitting or did he stay while filing the wage complaint? I'm wondering what the best strategy is here.

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Romeo Barrett

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He continued working for 1 more week while applying for other jobs, but told them in writing he would not continue after that without being paid. The important thing was he had documentation showing he didn't just stop showing up - he communicated clearly. He got unemployment AND eventually got his back pay after the wage complaint.

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Haley Stokes

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also check ur employment contract if u have 1. some have clauses about payment timelines and what happens if they miss payroll. might give you more leverage with TWC and wage claims.

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Asher Levin

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In my experience, once a company misses payroll it's pretty much done. They might limp along for a few more months but the end is near. Start job hunting immediately. And yes file for benefits but don't expect that process to be quick either.

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Monique Byrd

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I've started applying for jobs already, but I'm worried about the gap in income. Do you know how long the TWC process typically takes from filing to receiving benefits? And will they backdate it to when I first stopped getting paid?

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Serene Snow

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Generally, TWC benefits take 2-3 weeks to begin after filing if there are no complications. In your situation, expect a fact-finding interview to determine eligibility since it's not a standard layoff. Benefits can be backdated to when you first file, not when you stopped getting paid, so file ASAP. The first week is a 'waiting week' where you don't receive benefits. Make sure to request payment every two weeks even while waiting for your claim to be approved.

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Lia Quinn

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Not getting your paycheck is ABSOLUTELY a valid reason for unemployment!! My cousin works in HR and says this is called 'constructive discharge' even if they didn't fire you!! Good luck!!!

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Jackie Martinez

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One more important thing: When you file your claim, TWC will contact your employer for their side of the story. Be prepared for them to potentially dispute your claim by saying payment was just delayed or that you're still employed. This is why documentation is crucial. Screenshot any bounced paychecks, keep records of work performed, save texts/emails about promised payments. Also, in Texas, you must meet the work search requirements while receiving benefits - currently 3 work search activities per week. Document these carefully as TWC may audit you.

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Monique Byrd

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Thanks for the additional info. I'll make sure to document everything carefully. If they do eventually pay us (even if it's late), would I have to pay back any unemployment benefits I received? Or am I still entitled to the benefits because they missed the regular payday?

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Jackie Martinez

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If they eventually pay you for hours you've already reported to TWC and received benefits for, you would need to report that as income when received, which could affect future benefit amounts or create an overpayment. However, the fact that they paid late doesn't invalidate your initial claim if you had good cause to file based on missed payments. TWC evaluates each payment period separately, so late payment for past work doesn't necessarily affect eligibility for the weeks they failed to pay on time.

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