TWC claim issues after receiving severance - am I disqualified?

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.

samething happened 2 me but they never told me how long id be disqualifed for! i had 2 call them like 100 times!!

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.

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.

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.

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.

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.

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!

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

I went through something similar last year when I was laid off from my marketing job. Got 12 weeks severance and TWC took forever to process everything. One thing I learned is that you can appeal the severance allocation if you think they calculated it wrong - I had to do this because they initially counted my vacation payout as part of my severance when it should have been separate. Also, if you're really struggling financially during the waiting period, you might qualify for other assistance programs like SNAP or emergency rental assistance through your county. The allocation period feels endless when you're going through it, but hang in there - the benefits will eventually start once it's over as long as you keep up with all the requirements.

For anyone still struggling with this - I just went through the exact same thing and wanted to share what I learned. The TWC severance allocation process is really poorly communicated, but here's the key info: they divide your total severance by your previous weekly wage (not your UI benefit amount) to determine weeks of disqualification. So if you made $1,400/week and got $11,200 severance, that's 8 weeks disqualified, not 16. Make sure they're using the right calculation! Also, while you're waiting, definitely look into your local workforce board - many offer free career counseling and job placement services that can help you land something faster. The Harris County workforce board helped me find interviews while I was in my severance waiting period. Keep your chin up - this process sucks but it does eventually work out!

I'm dealing with a very similar situation right now! Got laid off from my engineering role 3 weeks ago with 10 weeks of severance pay. My TWC claim has been stuck in "pending" status with that same "severance pay investigation" message. It's so frustrating that they don't just tell you upfront how the calculation works or give you a timeline. I've been religiously doing my work searches and submitting payment requests every two weeks like everyone here recommends, but the uncertainty is killing me. Really glad to see your update that you finally got through - gives me hope that I'll eventually get some answers too. The fact that they mailed you a determination letter that you never received is典型 TWC though. I'm going to try calling right at 7 AM like you did. Thanks for sharing your experience!

Just wanted to add some perspective as someone who went through this process twice (unfortunately got laid off again during the pandemic). The severance allocation period is definitely one of the most confusing aspects of Texas unemployment, but there are a few things that might help others in this situation: 1. **Document everything** - Keep copies of your severance agreement, any HR communications, and screenshots of your TWC account status. I had to reference these multiple times. 2. **Set up mail forwarding** - TWC still relies heavily on physical mail for important notices. If you've moved recently or might move during your claim period, make sure your address is updated everywhere. 3. **Consider temporary/contract work** - During your severance allocation period, you can still do temporary or contract work and report that income. It won't affect your future UI benefits once the allocation period ends. 4. **Use this time strategically** - Since you're required to do work searches anyway, treat this period as an opportunity to really focus on your job hunt without the pressure of needing to accept the first offer that comes along. The system is definitely frustrating and poorly designed, but hang in there - once your allocation period ends, the benefits do kick in automatically if you've been keeping up with all the requirements.