< Back to Texas Unemployment

QuantumQuasar

TWC denied one employee's unemployment claim due to severance while approving others - what's the explanation?

Our company just went through layoffs and 16 of us were let go with identical severance packages (about $4,800 each). Here's where it gets weird - 13 coworkers have already been approved for TWC benefits and are receiving weekly payments, but my friend Sarah just got denied specifically because of her severance package. She appealed and TWC denied her again! How can the same severance package disqualify one person but not everyone else? We all worked at the same tech support center, had similar positions and pay rates, and were laid off on the same day. Is there something specific in her case that triggered this different treatment? Has anyone experienced inconsistent TWC decisions like this? Any advice on what she should do next would be really appreciated.

The difference is probably in how the severance was reported or calculated. TWC has specific rules about how severance affects benefits. Did your friend report her severance differently than others? Was her severance perhaps slightly higher due to longer tenure? Sometimes TWC considers severance as 'wages in lieu of notice' which can delay benefits but not permanently deny them. She should request a detailed explanation of the denial - there's usually a specific reason code on the determination letter.

0 coins

QuantumQuasar

•

Thanks for the response! Sarah checked and her severance amount was identical to everyone else's ($4,800), and we were all there between 2-3 years. She did mention that during her initial application, she answered 'yes' to receiving severance when asked. I wonder if some of our coworkers mistakenly put 'no' on that question? Her determination letter specifically cites 'receipt of severance payment' as the reason for denial though.

0 coins

Jamal Wilson

•

this happened at my last job! some ppl got approved some didnt even tho we all got same package. turns out those who got denied listed their severance as a "lump sum" but the ones who got approved called it "wages in lieu of notice" which TWC treats differently!! tell ur friend to call TWC asap

0 coins

QuantumQuasar

•

Oh wow, that's really interesting! I'll definitely let her know about this distinction. So frustrating that such a small terminology difference could cause this issue. Did your coworkers who were initially denied manage to get it fixed after they figured this out?

0 coins

Mei Lin

•

There's a very specific distinction in how TWC treats different types of post-employment payments. Severance (considered payment for past service) can indeed disqualify someone, while wages in lieu of notice (payment instead of giving advance notice) may only delay benefits. The key is how the employer reported it to TWC on their end. Your friend should: 1. Request a copy of her Employer's Response to the claim from TWC 2. File a second level appeal if the appeal was already denied once 3. Ask the employer to clarify with TWC how they classified the payment I've seen cases where the exact same payment was classified differently for different employees, resulting in inconsistent determinations.

0 coins

Maybe she could just call the employer directly and ask them to send a correction to TWC? Would that be faster than going through the whole appeal process again? Those second appeals can DRAG ON FOREVER... my cousin was waiting for 3 months last year while bills piled up!!!

0 coins

Amara Nnamani

•

I had basically the same experience when our company downsized last year! My determination letter said my severance disqualified me while my cubicle neighbor got approved right away. After TWC kept giving me the runaround on the phone (when I could even get through), I tried Claimyr (claimyr.com) and got connected to a TWC agent in under an hour. They explained that my employer had coded my severance as a regular payment rather than a separation payment like my coworkers. The agent helped me file the right appeal paperwork and I got approved two weeks later! There's a video showing how it works: https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh - it was definitely worth it after weeks of busy signals.

0 coins

QuantumQuasar

•

Thank you for sharing that! Sarah's been trying to call TWC for days and just keeps getting busy signals or disconnected. I'll pass along that website to her. Sounds like getting through to an actual person might be exactly what she needs right now. Did the TWC agent walk you through exactly what needed to be fixed with your claim?

0 coins

when I appled for unployment last month they actuly NEVER EVEN ASKED about severence?? maybe ur friend put it somewere it didnt belong on the form and now TWC is confused??? the online form is SO CONFUSING

0 coins

Mei Lin

•

The question about severance is definitely on the application, but it's worded as "Have you received or will you receive any payments from your employer after your last day of work?" They don't specifically use the word "severance." This might be why some people answer differently and get different results.

0 coins

NebulaNinja

•

The same thing happened at my company!!! It totally depends on how the HR department coded the severance in their system. Some got coded as "severance pay" (which can disqualify you) and others as "wages in lieu of notice" (which only delays benefits). It's INFURIATING that HR's laziness or incompetence can mess up someone's unemployment benefits! The system is DESIGNED to be confusing and deny people their rightful benefits! Your friend needs to get HR to submit a correction to TWC immediately!!

0 coins

QuantumQuasar

•

I think you may be onto something. Our HR department was completely overwhelmed with processing all the layoffs. I bet they made some inconsistent entries when reporting to TWC. Sarah is going to contact our old HR manager tomorrow to see if there's a way to check how they classified her payment.

0 coins

Just to clarify something important: TWC uses a calculation method where they distribute severance pay over weeks based on your previous weekly wage. For example, if your friend earned $800/week and received $4,800 severance, TWC might consider that as 6 weeks of continued wages, delaying (not denying) benefits for that period. Key questions: 1. When did she file compared to the others? 2. Did she list a different last day of work? 3. Did she receive any extra vacation payout that others didn't? It sounds like this might just be a delay rather than a permanent denial. The determination letter should clarify whether she's disqualified permanently or just for a specific period.

0 coins

QuantumQuasar

•

That's helpful context, thanks! Her last day was the same as everyone else (March 15, 2025). She filed about 2 days after some others but before several who were approved. Looking at her determination letter again, it does say: "Claimant is disqualified from receiving benefits effective 03/16/2025 through 05/11/2025 due to receipt of severance payment." So maybe this is just a temporary delay like you suggested? Though it's strange others with identical severance aren't experiencing the same delay.

0 coins

Has she filed her payment requests every two weeks even though she was denied? That's SUPER important!! Even while appealing, you MUST keep filing your payment requests or you lose those weeks forever!!! When my claim had issues last year, I almost missed out on 6 weeks of backpay because I stopped requesting payments during my appeal process!!

0 coins

QuantumQuasar

•

That's a really good point, I'll check with her right away! I'm not sure if she's been maintaining her payment requests during this process. Would she do that through her TWC account online even though she's currently denied?

0 coins

Mei Lin

•

Based on your latest comment, this actually makes perfect sense. Your friend isn't permanently denied - she's just having her benefits delayed during the severance period (March 16 to May 11). This is standard TWC procedure. The real question is why aren't the others experiencing the same delay? Possibilities: 1. They didn't report their severance correctly 2. The employer reported inconsistently 3. Different TWC claim examiners made inconsistent decisions Your friend should continue filing payment requests every two weeks. After May 11, she should start receiving benefits if she continues to qualify. If the others weren't properly reporting their severance, they might eventually face an overpayment situation.

0 coins

QuantumQuasar

•

Thank you for explaining this so clearly! I just spoke with Sarah and she's relieved this might just be a timing issue. She's going to call her former supervisor to confirm how the severance was reported to TWC for all employees. We're worried now that our coworkers who are already receiving benefits might end up with overpayment notices. What a mess! But at least there's a path forward now.

0 coins

Cameron Black

•

This is actually a pretty common issue with mass layoffs. TWC processes claims individually, and even small differences in how information is reported or interpreted can lead to inconsistent decisions. From what you've described, it sounds like Sarah's case was handled correctly according to TWC rules - the severance is causing a temporary delay, not a permanent denial. The concerning part is that 13 other people with identical packages were approved immediately. They either didn't report their severance properly, or there was an error in how their claims were processed. I'd recommend Sarah document everything and keep filing her payment requests. She should also consider reaching out to your former employer's HR to get clarification on how they reported the severance payments to TWC. If there were reporting inconsistencies, that could help explain the different outcomes.

0 coins

Natalie Adams

•

This is really helpful advice, thank you! Sarah is definitely going to document everything and keep filing those payment requests. It's frustrating that the system can be so inconsistent, but at least now we understand what's probably happening. I'm curious though - if our coworkers who got approved immediately did make reporting errors, what typically happens when TWC catches those mistakes? Do they just adjust future payments or do people have to pay back what they already received?

0 coins

Texas Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,095 users helped today