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TWC eligibility when employer switched me from salary to commission - does this count as reduced hours?

I'm in a really tough situation and could use advice about TWC eligibility. I've been with my company for almost 4 years, but they just made some major changes that are basically destroying my income. They converted me from salary to straight commission AND they're cutting back on their direct advertising in favor of an affiliate sales model. These changes mean WAY less traffic and lower margins on what I do sell. My income is going to drop dramatically. I've started job hunting but haven't found anything yet. I need flexibility in my schedule because I care for my special needs son, which limits my options somewhat. I've never needed unemployment before (even made it through COVID without assistance), but I'm seriously worried about supporting my family right now. My question is: Can I qualify for TWC benefits while technically still being employed? They're calling me a "contract" sales member now instead of a regular employee. Does this count as reduced hours or constructive discharge? I'm worried they structured this deliberately to avoid unemployment claims. Any advice would be really appreciated - my family's security is at stake here.

Yes, you may qualify for partial unemployment benefits! This situation is called a "material change in employment terms" and TWC often recognizes substantial pay reductions (which switching from salary to commission definitely is) as good cause for separation. You don't necessarily have to be fully unemployed to receive benefits. You should apply and make sure to clearly document: 1. Your previous salary amount 2. Your actual commission earnings now (which I'm guessing are much lower) 3. The date when this change occurred 4. Any written communication from your employer about this change When you file, you'll need to report any commission income each payment request period. TWC will determine if you qualify for partial benefits based on how much you're earning compared to your previous wages. Don't let your status as "technically employed" stop you from applying!

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Thank you so much for the detailed response! This is really helpful. When filling out the application, should I select that I quit, was fired, or something else? I'm still showing up for work trying to make the commission thing work, but my earnings have dropped about 70% compared to my previous salary. I don't want to answer incorrectly and get automatically denied.

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I went through almost EXACTLY this same situation last year! My employer of 5 years switched me from salary+small commission to PURE commission and our sales tanked the same month. It was basically a sneaky way to force us to quit without having to lay us off. I applied for benefits and put "still employed but hours/wages significantly reduced" on my application. I had to go through an extra phone interview to explain the situation, but I was approved! Make sure you keep track of ALL hours worked and commission earned. I got partial benefits for about 8 weeks until I found a new job. The key is documenting the HUGE change in your compensation structure. They can't just cut your pay by 60-70% and expect TWC to side with them. Good luck!!!

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That's so helpful to hear from someone who went through this! Did you have to provide any specific documentation about the change in compensation structure? I have emails outlining the change, but wondering if I need to gather anything else before applying.

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go ahead and apply but dont get your hopes up... twc almost ALWAYS sides with employers. my brother had somthing similar happen and they denied him saying he was "still employed" even though his hours got cut to like 10 a week. the whole systems rigged against workers tbh

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That's not entirely accurate. TWC does have specific provisions for reduced hours and substantial changes in employment terms. While some claims do get denied initially, providing proper documentation and clearly explaining how your earnings have been drastically reduced can make a big difference. If denied, always appeal - many denials get reversed in the appeal process.

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This is actually a textbook case of what TWC calls "substantial change in employment terms." The key factors TWC looks at: 1. Was the change substantial? (Switching from guaranteed salary to unpredictable commission definitely qualifies) 2. Was it initiated by the employer? (Yes in your case) 3. Would a reasonable person find the new arrangement unacceptable? (70% pay reduction would qualify) When you file, select "Still employed but with reduced hours/wages" as your status. Be prepared for an investigator to contact both you and your employer. Make sure to emphasize that this wasn't a normal business fluctuation but a complete restructuring of your compensation. If you're having trouble getting through to TWC on the phone, I've used a service called Claimyr (claimyr.com) that helped me connect with an agent quickly. They have a video demo at https://youtu.be/V-IMvH88P1U?si=kNxmh025COIlIzKh that shows how it works. Saved me hours of redial frustration when I needed to explain my complicated situation to an actual person.

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Thank you for breaking this down so clearly! That "substantial change" terminology is exactly what I needed to understand. I'll definitely mention this specific language when I apply. And thanks for the tip about Claimyr - the phone system has been a nightmare every time I've tried calling TWC directly.

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Have you considered looking into disability benefits instead of unemployment, given your situation with caring for a special needs child? My cousin got assistance through that route and it provided more stable support than unemployment.

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I haven't looked into that specifically. My son has support through other programs, and I'm fully capable of working - I just need some flexibility in my schedule. My goal is definitely to find new employment rather than long-term benefits. I'm just trying to bridge this gap while I search for a job that can accommodate our family needs.

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I'm a little confused by some of the advice here. When you file with TWC, you need to be very careful about how you categorize your separation. If you say you're "still employed," they might deny you outright. In my experience with TWC (I went through something similar in 2024), you should actually file as "quit with good cause" and then explain the material change in employment terms. Technically, when an employer makes such a drastic change to your compensation, TWC often considers this a constructive discharge - basically, they forced you to quit by making the job untenable. Just make sure when filing that you clearly explain the before/after of your compensation and how dramatically it affects your earnings. Be prepared for your employer to fight this - they'll likely claim you're still employed and just experiencing "market fluctuations" in commission.

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That's not entirely right. I successfully got benefits while still technically employed after my pay structure changed. The key is selecting "reduced hours/wages" not "quit." If you select quit, you have to prove good cause for quitting, which is a higher burden. By selecting reduced hours/wages, TWC will evaluate the change in compensation structure directly.

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wait so are you actually still working there? if ur still showing up every day idk if you can get unemployment... don't u have to be like actually unemployed? maybe look into food stamps or other help instead

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Texas has provisions for partial unemployment when your hours or wages are substantially reduced. You don't have to be completely unemployed to receive benefits. What matters is the significant reduction in earnings compared to your base period wages. OP's situation - switching from salary to commission with a resulting 70% pay drop - would potentially qualify.

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I forgot to mention something important - when TWC looks at your case, they're going to compare your current weekly earnings to your previous earnings. Make sure you have documentation showing what you made BEFORE the change (pay stubs, etc) and what you're making now. The bigger the difference, the stronger your case. Also, if your employer tries to argue that you're just "not selling enough" now, be ready to counter with proof that the change in advertising strategy has directly impacted lead volume. This strengthens your argument that it's a structural change in the job, not performance-related.

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That's excellent advice - thank you! I've been keeping track of our lead numbers since the change, and there's been about a 65% drop in quality leads since they switched to the affiliate model. I'll make sure to document all of this for my application.

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One more thing to consider: your base period wages for unemployment will be based on your salary, not your new commission structure. This is actually good news for you, as your benefit amount will be calculated on your higher, previous earnings. When you file, you'll need to continue reporting any commission income you receive each payment period. If you earn over a certain threshold in a week, your benefits might be reduced or eliminated for that week, but you would still remain eligible for future weeks when your commission is lower. Just don't wait too long to file! The sooner you get your claim started, the better.

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That's really helpful information. I wasn't sure how they would calculate the benefit amount given my situation. I'll go ahead and start my application this week rather than waiting to see if the commission situation improves.

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