TWC claim issues after receiving severance - am I disqualified?
I was laid off from my software engineering job at a large tech company last month and received 8 weeks of severance pay (about $11,200 total). I filed for unemployment right away, but my TWC claim is showing as 'pending' with some kind of issue. When I check the 'Claim and Payment Status' page, there's something about 'severance pay investigation' but no other details. Has anyone dealt with this before? Do I need to wait until my severance period is over to start getting benefits? I'm confused because I thought you could still get unemployment while receiving severance in Texas, just with a reduced amount. I've tried calling TWC like 30 times but can't get through to a human being. Help!
22 comments
Omar Zaki
Severance pay in Texas definitely impacts your UI benefits but doesn't necessarily disqualify you completely. TWC considers severance as wages paid after separation, so they'll allocate your severance over a specific period based on your weekly wage amount. For example, if your weekly benefit amount would be $700, and you got $11,200 in severance, they'll consider that as covering about 16 weeks of benefits. You won't receive UI payments during this "allocation period" but should start receiving them afterward if you're still unemployed and meeting work search requirements. Keep requesting payment every two weeks even during this time! I went through this last year and eventually got my benefits, but only after my severance allocation period ended.
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GalacticGladiator
•Thank you for explaining! So I need to keep submitting my payment requests even though I'm not getting anything? Does the TWC portal actually tell you how many weeks your severance will disqualify you for? I can't find that info anywhere in my account.
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Chloe Taylor
samething happened 2 me but they never told me how long id be disqualifed for! i had 2 call them like 100 times!!
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GalacticGladiator
•Did you finally get through? How long did it take before your benefits started?
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Diego Flores
You're dealing with what TWC calls "severance pay allocation" - it's covered in Chapter 815.20 of the Texas Administrative Code. Here's how it works: TWC takes your total severance amount ($11,200) and divides it by your weekly wage (whatever you were making) to determine how many weeks you'll be disqualified. This is called your allocation period. Important points: 1. You MUST continue requesting payments every two weeks even during this period 2. You MUST complete your 3 work search activities each week 3. After your allocation period ends, benefits should begin automatically if you've been doing #1 and #2 The "severance pay investigation" status means they're calculating your allocation period. This can take 2-3 weeks to resolve. Once determined, you'll get a "Determination on Payment of Wages" letter explaining exactly how many weeks your benefits are delayed.
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GalacticGladiator
•Thanks for the detailed explanation! So frustrating that I can't just see this information in my online account. I'm definitely still doing my work searches but was worried I was doing something wrong.
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Anastasia Ivanova
I had this EXACT SAME SITUATION last year!!! My severance was slightly less than yours ($9,800) and they disqualified me for about 3 months. The most annoying thing is that TWC doesn't automatically tell you how long your disqualification period is - you HAVE to speak with someone to find out. I was going crazy trying to get through to them on the phone. Finally I found this service called Claimyr that got me connected to a TWC agent in about 20 minutes when I had been trying for WEEKS. Their website is claimyr.com and they have a demo video that shows how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh The agent was able to tell me exactly when my benefits would start and answered all my questions. Seriously saved my sanity during an already stressful time.
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Sean Murphy
•Does this actually work? I've been trying to get through to TWC for 2 weeks about my claim issues.
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Anastasia Ivanova
•It worked for me! The service basically holds your place in line and calls you when they've got a TWC agent on the line. Definitely better than spending hours redialing that busy signal.
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StarStrider
i disagree with some of these responses. severance isn't the same as wages in all cases. if your severance is specifically labeled as "in lieu of notice" it can be treated differently. might be worth checking your severance agreement wording.
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Diego Flores
•You're partially correct, but that's a specific exception. TWC does treat severance differently if it's explicitly labeled as "payment in lieu of notice" on your severance agreement. However, standard severance pay (which is what OP seems to have) is absolutely allocated as wages for UI purposes in Texas. This is well-established in TWC precedent cases and their published guidelines.
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Zara Malik
My company laid me off in January and gave me 6 weeks severance. TWC did their "investigation" which took about 3 weeks, then sent me a letter saying I couldn't get benefits until March 15th (which was when my severance period ended). The important thing is that you need to keep requesting payment every two weeks even while you're in the waiting period! If you miss a payment request, you could lose benefits even after your severance period ends. Also make sure you're doing your work searches and documenting them - they can audit you at any time.
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GalacticGladiator
•Thank you! Did your online account ever show the specific date you'd be eligible, or did you only find out from the letter?
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Zara Malik
•Only from the letter. The online system just showed "pending" until suddenly it started showing the payment amounts after my severance period ended. The TWC online system isn't very transparent about this stuff.
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Sean Murphy
I'm in almost the same situation but my severance was spread out as regular paychecks over 10 weeks rather than one lump sum. Does anyone know if TWC treats these differently? My claim has been pending for a month with no updates.
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Diego Flores
•TWC treats them the same way - whether paid as a lump sum or spread out as continued paychecks, severance is allocated based on the total amount. The only difference is in reporting: with continued paychecks, you need to report that income on each payment request during the weeks you receive it.
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GalacticGladiator
Update: I finally managed to get through to TWC this morning after calling repeatedly at exactly 7:00 AM when they open. The agent told me my severance is being allocated over 16 weeks, so I won't receive any UI benefits until mid-July! But she confirmed I should keep requesting payments every two weeks and doing my work searches. Apparently, this is all explained in a determination letter that was mailed to me 2 weeks ago but I never received. They're sending another copy. Thanks everyone for your help - at least now I know what's going on!
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Omar Zaki
•Glad you got answers! It's frustrating how hard it is to get this basic information. Make sure you're keeping detailed records of all your work search activities since they might audit you later. And definitely keep requesting payments on schedule - the system will automatically start paying you once your severance allocation period ends.
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GalacticGladiator
•Will do! At least now I know not to expect anything until July and can plan accordingly.
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Luca Marino
anyone els think its ridiculous that TWC takes WEEKS to tell u this information when they could just post it on ur account???? the whole system is designed to frustrate people into giving up
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StarStrider
•totally agree! and why make people keep requesting payment when they know they're not going to pay you? just seems like busy work designed to trip people up
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Diego Flores
•It's definitely frustrating, but the reason they require continued payment requests is to verify you're still unemployed, available for work, and actively searching throughout the severance period. If you stop requesting payments, they assume you're no longer seeking benefits or have found work.
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